If a commodity's price is above its marginal cost, the market will tend to produce too much of the good
a. True
b. False
Indicate whether the statement is true or false
False
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An economist says: "The demand curve has two interpretations." What does the economist mean?
What will be an ideal response?
If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then the U.S
A) a comparative advantage in the production of beer. B) an absolute advantage in the production of beer. C) a comparative advantage in the production of pizza. D) a comparative advantage in the production of beer and pizza.
Which of the following statements is correct?
a. Firms with some degree of monopoly power are common, but firms with substantial monopoly power are rare. b. Firms with some degree of monopoly power are rare, as are firms with substantial monopoly power. c. Firms with some degree of monopoly power are common, as are firms with substantial monopoly power. d. Firms with some degree of monopoly power are rare, but firms with substantial monopoly power are common.
If the real interest rate in the domestic loanable funds market increases,
What will be an ideal response?