We can experience a shortage of any good or service if
A) the price of using it is too high.
B) the price of using it is too low.
C) people demand more than they need.
D) if people need more than they demand.
B
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Which of the following statements is false?
A. While managers must understand how output prices are determined, determination of input prices is irrelevant because it is beyond the manager's control. B. Output prices influence a firm's revenues. C. Input prices influence a firm's costs of production. D. Price determination is the key element in any market system.
Economies of scale are said to exist when inputs are increased by some percentage and output increases by a(n) __________ percentage, causing unit costs to __________.
In an open economy, an increase in saving might not cause an increase in domestic investment. Why not? Does that mean that an increase in saving is undesirable?
What will be an ideal response?
Consider a market with just one firm. The demand in the market is p = 18 – Q and the firm has a linear cost function C(Q) = 2Q
a. How much output will this firm produce. What will be the profit and consumers surplus? b. Suppose a second firm with the same cost function enters the market and the two firms compete in a Cournot style (simultaneous output choice). What will be the equilibrium price and quantity in the market? What is the total market profit and CS?