A price ceiling in a perfectly competitive market
a. leads to the same result as if the market were monopolized
b. results in a welfare loss
c. is effective only if it is set above the equilibrium price
d. may result from collusion among the firms selling in that market
e. may result from collusion among the consumers buying in that market
B
You might also like to view...
If the economy is characterized by diminishing or decreasing returns to scale, then a
A) doubling of inputs will lead to a constant output. B) doubling of inputs will lead to a constant output. C) doubling of inputs will lead to a two-fold increase in output. D) doubling of inputs will lead to a less than two-fold increase in output.
Owning a patent can provide a firm with monopolistic power
a. True b. False Indicate whether the statement is true or false
Which of the following countries have liberalized their economies and substantially improved their economic freedom rating since 1990?
a. Argentina and Brazil b. Zimbabwe and the Republic of Congo. c. Estonia and India d. Italy and France
When operating at the profit-maximizing/loss-minimizing level of output, total revenue minus total cost equals
A. $160.
B. $320.
C. zero.
D. -$320.