Which of the following statements best describes equilibrium?
a. The area above the point where the supply curve (S) and the demand curve (D) cross is called the equilibrium.
b. The area below the point where the supply curve (S) and the demand curve (D) cross is called the equilibrium.
c. The point where the supply curve (S) and the demand curve (D) cross is called the equilibrium.
d. Any point above where the supply curve (S) and the demand curve (D) cross is called the equilibrium.
c. The point where the supply curve (S) and the demand curve (D) cross is called the equilibrium.
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A monopolist faces the inverse demand curve P = 60 - Q. It has variable costs of Q2 so that its marginal costs are 2Q, and it has fixed costs of 30. The monopoly's profit maximizing output is
A) 5. B) 10. C) 15. D) 20.
Deregulation
a. Began in Europe in the 1960s b. Began in the United States in the late 1970s and early 1980s c. Did not spread to Europe d. Has been a failure e. Both b and c are correct
Use the following graph of the market for milk to answer the question below.
If 30 million gallons of milk are being produced, then we know
A. too much milk is being produced. B. too little milk is being produced. C. marginal benefit is $1.00. D. marginal benefit is greater than marginal cost.
As interest rates rise, _____.
(A) It becomes more expensive to hold money as cash. (B) Bonds and savings accounts become less attractive for investment. (C) Firms will generally spend their wealth. (D) It becomes less expensive to hold money as cash.