If supply and demand both increase, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. uncertain; higher
B. higher; higher
C. lower; lower
D. lower; uncertain
Answer: A
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The true cost of any product purchased by the military is its purchase price
a. True b. False
If a firm in a perfectly competitive market faces the cost curves in the graph shown and produces at the profit-maximizing level of output, which of the following is true? A firm will:
A. lose money and shut down in the short run if price falls below $15.
B. lose money, but continue to operate in the short run if price is at least $15.
C. make positive profits any time the price is greater than $15.
D. All of these are true.
How do economies of scale contribute to the development of an oligopoly?
A) Economies of scale make it legally difficult for new firms to enter.
B) Economies of scale make small-scale producers inefficient.
C) Economies of scale are based on control of a key resource, without which other firms cannot enter an industry.
D) Economies of scale are guaranteed when a patent is granted.
More than any other country, the citizens of _______ consider American dollar a much better medium of exchange and standard of value than their own currency.
Fill in the blank(s) with the appropriate word(s).