Assume that the personal computer industry is perfectly competitive. The fact that the price of personal computers over the last decade has fallen despite increases in demand signifies that the industry is a decreasing-cost industry
Indicate whether the statement is true or false
TRUE
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Positive economic principles are those that:
A. are influenced by political ideology. B. are always correct. C. predict how people will behave. D. indicate how people should behave.
Refer to Figure 4-4. What is the value of producer surplus at a price of $18?
A) $240 B) $300 C) $340 D) $720
A quota on imported avocadoes ______________ the price of avocadoes, _____________ consumers' surplus for avocado buyers, _______________ producers' surplus of avocado growers and __________________ tariff revenue. Because the loss to _____________ is more than the gain to ___________________, there is a net loss to society
A) raises; increases; decreases; generates; producers; consumers and government B) lowers; increases; decreases; does not generate; producers; consumers C) raises; increases; decreases; does not generate;consumers; producers and importers D) raises; decreases; increases; generates; consumers; producers and government
What situation gives rise to a surplus?
A) The market clearing price of the good is too high. B) The current price of the good is below its market clearing price. C) The current price of the good is above its market clearing price. D) Supply of the good decreases, but the market price is not permitted to change.