With identical firms, constant input prices, and all the other characteristics of a competitive market
A) the long run equilibrium price is the minimum of the average cost curve.
B) a shift in demand will change the equilibrium price and quantity.
C) the long run and short run equilibria are identical.
D) Both A and B.
A
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Refer to Figure 15-17. You are a member of a student government and are asked to recommend a price for the course and you argue: "I think the college should charge a price so that it just breaks even on the course" How much profit (or loss) will the college make on the course if it charges this price?
A) -$2,592,000 B) -$1,080,000 C) $0 D) $450,000
A completely successful emission fee:
A.) Results in zero pollution. B.) Shifts the private MC curve to the same position as the social MC curve. C.) Shifts the social MC curve to the same position as the private MC curve. D.) Does not affect the private or social MC curve.
Accounting profits equal total revenue minus:
A. total explicit costs. B. total implicit costs. C. total economic costs. D. economic profits.
One of the special features of the health care market is asymmetric information. This refers to the following characteristics, except:
A. The doctor (supplier) tells the patient (demander) what to purchase B. Buyers have little understanding of services they are asked to consume C. Fee-for-pay arrangements lead to excessive quantities of services prescribed D. Consumers pay lower out-of-pocket costs