Use the following table to answer the question below.Quantity DemandedPriceQuantity Supplied5$7966875784693510241113If demand decreased by 4 units at each price, what would the new equilibrium price and quantity be?
A. $6 and 8 units
B. $5 and 7 units
C. $3 and 5 units
D. $4 and 6 units
Answer: C
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The above figure illustrates a firm's total revenue and total cost curves. Which one of the following statements is FALSE?
A) Economic profit is the vertical distance between the total revenue curve and the total cost curve. B) At output Q1 the firm makes zero economic profit. C) At an output above Q3 the firm incurs an economic loss. D) At output Q2 the firm incurs an economic loss.
The highest valued alternative that must be given up in order to choose an option is called the:
A. opportunity cost. B. utility cost. C. scarcity expense. D. accounting cost.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
For a monopolist to maximize profits, its
A. price equals marginal revenue. B. marginal revenue exceeds price. C. price equals average total cost. D. price exceeds marginal cost.