If the demand for a product decreases, but the supply for the product stays the same, which of the following would happen?
a. There will be a scarcity of the product.
b. There will be an equilibrium of the product.
c. There will be a shortage of the product.
d. There will be a surplus of the product.
d. There will be a surplus of the product.
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In economic terminology, what is the meaning of investment?
What will be an ideal response?
Which of the following is true?
a. Decision making should never be centralized b. When decentralizing decision making, figure out a way to transfer information to the decision maker c. When decentralizing decision making, strengthen incentive compensation schemes d. When decentralizing decision making, weaken incentive compensation schemes
According to the Coase theorem, in order to solve a negative externality problem efficiently,
a. the property right must be assigned to the party with the least-cost alternative b. the property right must be assigned to the victim of pollution c. transaction costs must be high d. transaction costs must be low e. property rights must be determined by the courts
A price-setting firm faces the following estimated demand and average variable cost functions:Qd = 800,000 - 2,000P + 0.7M + 4,000PRAVC = 500 - 0.03Q + 0.000001Q2where Qd is the quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $53. Total fixed cost is $2,600,000. What price should the firm charge in order to maximize profit?
A. $510 B. $420 C. $445 D. $400 E. $356