Any market that we are studying and the markets for the related inputs must all be in equilibrium at the same time. This leads to:
A. simultaneous equilibrium effects.
B. partial equilibrium effects.
C. general equilibrium effects.
D. equilibrium-induced changes.
C. general equilibrium effects.
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An increase in the equilibrium quantity of a product will result
A) when there is an decrease in demand and a decrease in the cost of inputs used to make the product. B) when there is an increase in supply and an increase in demand for the product. C) when the quantity of the product supplied exceeds the quantity demanded. D) when there is an increase in supply and a decrease in demand for the product.
If preferences are one-dimensional and preferences are single peaked, majority rule will result in selection of the project most favored by:
a. no one. b. the median voter. c. the average voter. d. everyone.
A merger between two firms that have a supplier-purchaser relationship is:
a. horizontal. b. vertical. c. conglomerate. d. illegal. e. inefficient.
When marginal cost exceeds average total cost,
a. average fixed cost must be rising. b. average total cost must be rising. c. average total cost must be falling. d. marginal cost must be falling.