When a market is in equilibrium,
a. producers earn profits
b. the minimum possible price is achieved
c. there is no incentive for consumers or producers to change their current behavior
d. excess demand is less than excess supply
e. the maximum possible price is achieved
C
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A) It serves as a lender of last resort. B) It serves as a bank for the national treasury. C) It regulates depository institutions. D) all of the above
What three sources of revenue finance the EU budget?
What will be an ideal response?
The labor supply curve for a monopsony is
A) perfectly horizontal. B) perfectly vertical. C) upward sloping but not perfectly vertical. D) downward sloping.
Suppose a perfectly competitive firm faces the following cost and revenue conditions: ATC = $25.50; AVC = $20.50; MC = $25.50; MR = $28.50. The firm should
A) decrease output. B) increase output. C) shut down. D) continue to produce its current output.