A sudden increase in the market demand in a competitive industry leads to
a. A market equilibrium profits higher than the original equilibrium in the short-run
b. A market equilibrium profits equal to the original equilibrium in the long-run
c. Both a and b
d. None of the above
c
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According to your textbook authors, monetary calculation would improve if
A) the government subsidizes business production. B) the Fed sought to establish monetary equilibrium. C) Congress seeks to establish a budget surplus. D) domestic producers are protected from foreign competition.
The owner of a recently built cruise ship is deciding how to price its rooms. What advice would you give the owner?
a. Since MR
Figure 7-14
Of the long-run AC curves in Figure 7-14, which displays increasing returns to scale for all levels of output?
a.
1
b.
2
c.
3
d.
4
If supply is unchanged, a rightward shift in the demand curve for gourmet ice cream will result in:
a) An increase in equilibrium quantity and a lower equilibrium price. b) A decrease in equilibrium quantity and a higher equilibrium price. c) A decrease in equilibrium quantity and a lower equilibrium price. d) An increase in equilibrium quantity and a higher equilibrium price.