In the figure above, if pizza production is restricted to 5,000 pizzas a day, the deadweight loss is
A) $45,000 per day.
B) $12,500 per day.
C) $22,500 per day.
D) $90,000 per day.
E) zero.
C
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What is an inverse demand function? If the demand for a firm's product is given by the expression Q = 600 - 3P, what is the firm's inverse demand function? By how much would the firm have to change its price in order to increase sales from 300 units to 450 units?
What will be an ideal response?
An decrease in the money supply will lead to a ______.
a. higher interest rate in the short run b. lower interest rate in the short run c. higher interest rate than the original in the long run d. lower interest rate than the original in the long run
Which of the following is an example of the precautionary motive for saving?
A. Jordan sets aside $200 per month in case she has to pay for a new roof for her house. B. Every month, Chris puts $400 into his saving account so that he can buy a new car in a few years. C. Pat puts $400 per month in his 401(k) retirement account. D. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when the parents die.
If an airport decides to expand by building an additional passenger terminal, and in doing so it lowers its average cost per airplane landing, then the expansion would provide ________ to the airlines
A) economies of scale B) diseconomies of scale C) higher average costs but lower total costs D) higher marginal costs but lower total costs