If a price ceiling is set below the equilibrium price,
A. demand will be less than supply.
B. there will be a shortage.
C. there will be a surplus.
D. quantity demanded will equal quantity supplied.
Answer: B
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If a firm has monopoly power in the market for its output, the marginal revenue product of labor
a. is no different than for a competitive firm. b. is less for each unit of labor than for a competitive firm. c. continuously slopes upward instead of turning downward. d. is greater for each unit of labor than for a competitive firm.
If a rent ceiling is below the equilibrium rent, some allocation scheme must be used. The allocation methods include all of the following EXCEPT
A) charging the equilibrium rent. B) refusing to rent to individuals on the basis of sex, race, or some other attribute. C) requiring a payment, such as key money, in addition to the rent. D) the creation of a black market. E) increased search activity.
Consider the following game. You roll a six-sided die and each time you roll a 1, you get $50. For all other outcomes you pay $10. Since the expected value of this game is $0, the game is called a(n)
A. even game. B. zero sum game. C. fair bet. D. gamble.
The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index for this industry, the Justice Department would
A) regard the industry as highly concentrated. B) be against any two firms merging. C) consider the market oligopolistic. D) regard the industry as competitive.