Refer to Figure 12-2. The firm breaks even at an output level of
A) Q1 units. B) Q2 units. C) Q3 units. D) Q4 units.
D
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Assume that your state government has placed a price ceiling of $.20 per kilowatt hour on electricity. The equilibrium price per kilowatt hour for electricity is $.25. The government's action will result in
A) a surplus of electricity in the electricity market. B) an increase in the price of electricity to $.25 per kilowatt hour. C) an increase in producer surplus. D) a deadweight loss.
In the long-run equilibrium in perfect competition, consumer surplus is
A) positive. B) negative. C) zero. D) less than producer surplus.
Which of the following is not a goal of government programs?
a. to enforce private property rights b. to prohibit natural monopolies c. to reduce pollution d. to transfer money from higher-income households to the poorest households e. to maintain price stability
If there is an excess supply of sport utility vehicles, then:
A. demand is greater than supply. B. quantity supplied is greater than quantity demanded. C. quantity demanded is greater than quantity supplied. D. supply is greater than demand.