Governments sometime create an excess demand for a product by setting a maximum price that is less than the equilibrium price, resulting in a permanent excess demand for the product. This is known as a price floor.
Answer the following statement true (T) or false (F)
False
You might also like to view...
Two competing firms in a duopoly must decide whether or not to offer consumers a coupon for their good. The payoff matrix above represents the daily profit available to the firms under the different coupon strategies
a. What strategies and payoffs are represented by quadrant A? b. What strategy will Firm 1 pursue if it believes that Firm 2 is offering a coupon? c. What quadrant represents the equilibrium that will result if the firms act independently (compete)? d. What quadrant represents the equilibrium that will result if the firms successfully collude?
The world rate of population growth is closest to
(a) 1%. (b) 2%. (c) 3%. (d) 4%.
According to the Constitution, the President sets tariff rates
Indicate whether the statement is true or false
The full opportunity costs of production are calculated as the sum of both explicit and implicit costs
Indicate whether the statement is true or false