Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. Consumer surplus is area [A + B + E] if price is
A. P1.
B. P2.
C. P3.
D. above P3.
Answer: A
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Economies of scale exist when the long-run average-total-cost curve is positively sloped
a. True b. False Indicate whether the statement is true or false
All of the following are exempt from antitrust enforcement EXCEPT
A) professional baseball. B) labor unions. C) hospitals. D) television and radio stations.
The Economic Recovery Tax Act of 1981 ________ in a way that was designed to stimulate capital investment.
A. eliminated personal taxes B. increased government spending C. cut corporate taxes D. all of the above
Use the following graphs for a perfectly competitive market in the short run to answer the next question.
What will happen in the long run to market supply and the equilibrium price of the product?
A. Market supply will increase and equilibrium price will increase. B. Market supply will decrease and equilibrium price will decrease. C. Market supply will decrease and equilibrium price will increase. D. Market supply will increase and equilibrium price will decrease.