In peak-load pricing, the off-peak profit-maximizing quantity is ________ than the profit-maximizing quantity during the peak period and the profit-maximizing price during the off-peak period is ________ than the profit-maximizing price during the peak period.
A) less; more
B) more; more
C) less; less
D) more; less
C) less; less
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Deadweight loss and market failure are created when a market produces
A) either more or less than the efficient quantity. B) more than the efficient quantity but not when less than the efficient quantity is produced. C) less than the efficient quantity but not when more than the efficient quantity is produced. D) the efficient quantity. E) None of the above answers is correct because deadweight loss has nothing to do with the efficient quantity.
Price taking behavior exists in
A) perfectly competitive markets. B) markets with a monopolist, where consumers have to take price as it is given to them by the monopolist. C) automobile markets where consumers have to take the price set by the dealer. D) Both answers B and C are correct.
Which of the following is not held constant when moving along a product's demand curve? a. The price of the product itself
b. The expected price of the product in the near future. c. Income. d. Prices of complementary goods. e. Prices of substitutes.
According to the graph shown, if the government decides to increase its spending, it is most likely at point:
A. C B. D C. B D. It's impossible to tell without more information.