The above figure shows a motel engaged in monopolistic competition with other motels. The figure above shows the ________ equilibrium in which the motel is ________
A) short-run; earning an economic profit
B) short-run; earning a normal profit
C) long-run; earning an economic profit
D) long-run; earning a normal profit
E) short-run; incurring an economic loss
A
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Domestic demand for a good is QD = 3000 - 25P. The domestic supply of the good is QS = 20P. Foreign producers can supply any quantity at a price (P) of $30
a. What is the domestic equilibrium price and quantity? b. At this domestic equilibrium price, how much of the good will be supplied by domestic producers and how much by foreign producers?
If national income grows at twice the rate of population growth,
a. population will reach a maximum and per capita income will be maximized at that population level b. eventually the rates must equal c. per capita income will double each year d. per capita income will be reduced by half each year e. per capita income growth will double each year
Suppose that electricity producers create a negative externality equal to $5 per unit. Further suppose that the government imposes a $5 per-unit tax on the producers. What is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?
a. They are equal. b. The after-tax equilibrium quantity is greater than the socially optimal quantity. c. The after-tax equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.
The Board of Governors of the Federal Reserve System is
A) elected by the member banks' presidents. B) appointed by the Secretary of the Treasury C) appointed by the state governors in each Federal Reserve district. D) appointed by the president of the United States and confirmed by the Senate.