What happens if price falls below the market clearing price?
A) Demand shifts out.
B) Supply shifts in.
C) Quantity demanded decreases, quantity supplied increases, and price falls.
D) Quantity demanded increases, quantity supplied decreases, and price rises.
D
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A negative externality is a situation in which
A) there is a spillover of benefits. B) a cost associated with an economic activity is borne by a third party. C) a firm is paying in excess of the total costs of producing a good. D) none of the above.
To serve the public interest, government sometimes promotes competition by breaking up natural monopolies
a. True b. False
When resources are readily available, such as during the Great Depression, they can be used to produce more goods (and create more income) without causing prices to increase
Indicate whether the statement is true or false
The marginal cost curve is a competitive firm's supply curve; it shows how many units of output a firm will be willing to sell at different prices.
Answer the following statement true (T) or false (F)