A Price Ceiling is the;
(a) Minimum price consumers are willing to pay for a product.
(b) Minimum price usually set by government that sellers must charge for a product.
(c) Maximum price usually set by government that sellers must charge for a product.
(d) None of the above.
Answer: (c) Maximum price usually set by government that sellers must charge for a product.
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The entry and exit of firms in a monopolistically competitive market guarantee that
A) firms can earn economic profits in the long run. B) price equals average total cost in the long run. C) marginal revenue equals marginal cost and average total cost is minimized. D) firms can earn economic profits in the short run.
In the short run, the ATC curve is _____ above the AVC curve.
A. always B. sometimes C. never
High monopoly profits are possible if each of the oligopolists in a market: a. cooperates by reducing its output
b. cooperates by reducing its price. c. pursues self-interest by increasing its output. d. pursues self-interest by decreasing its output.
Carlos pays his cable bill using his bank's internet banking web site to withdraw funds from his checking account. This transaction is a(n):
A. e-money transaction. B. automated clearinghouse transaction (ACH). C. Fedwire transaction. D. digitized-check transaction.