If the industry depicted in the graph comprises only one seller, the profit-maximizing price and quantity will be
A. P3 and Q3.
B. P1 and Q3.
C. P2 and Q2.
D. indeterminate on the basis of the information given.
Ans: A. P3 and Q3.
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A restriction on imports is likely to reduce further restrictions on trade
Indicate whether the statement is true or false
If the producers bear a smaller tax incidence than the buyers in a market, which of the following must be true?
A. It must be a market for inferior goods. B. It must be a market for luxury items. C. Their supply curve must be more elastic than the buyers demand curve in this market. D. Their supply curve must be less elastic than the buyers demand curve in this market.
Last year, an economy produced 2400 bananas, 3000 satsumas and 2500 peaches. The price of bananas was €0.50, the price of satsumas was €0.60 and the price of peaches was €0.50. Nominal GDP was:
(a) € 5200. (b) € 6600. (c) € 4250. (d) Cannot be computed.
The trough occurs
A. at the peak of the business cycle. B. at the bottom of the business cycle. C. during the prosperity phase of the cycle. D. more than twice in the same cycle.