When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell
a. True
b. False
Indicate whether the statement is true or false
False
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In the short run, if price falls below a firm's minimum average total cost, the firm should shut down
Indicate whether the statement is true or false
The ABC Company manufactures routers that are used to provide high-speed Internet service. ABC sells an average of 1,000 routers each month, but to exhaust economies of scale in its industry ABC would have to sell 3,000 routers each month
Therefore A) ABC will soon go out of business. B) to reach minimum efficient scale ABC would have to sell at least 3,000 routers each month. C) ABC is experiencing diminishing returns. D) ABC is experiencing diseconomies of scale.
A point lying to the northeast of the production possibilities frontier is
A) unattainable. B) efficient. C) inefficient. D) profitable.
Equilibrium price refers to the:
A.) Price at which most producers are willing to sell their product. B.) Price at which the quantity demanded of a good equals the quantity supplied. C.) Price that equals marginal cost. D.) Balance between what producers want to charge and what the government will allow.