Figure 4.3 illustrates the demand for tacos. Assume that tacos and beer are complements. An increase in the price of beer would bring about a movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D2.
C
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The price charged by a profit-maximizing monopolist occurs at:
A.) The minimum of the average total cost curve. B.) The price where marginal cost equals marginal revenue. C.) A price on the demand curve above the intersection where marginal revenue equals marginal cost. D.) A price on the average cost curve below the point where marginal revenue equals marginal cost.
Why do barriers to entry create market power?
What will be an ideal response?
Usury laws are a form of price _____ and rent control is a form of price _____.
A. floor; floor B. ceiling; ceiling C. ceiling; floor D. floor; ceiling
Refer to Scenario 11.1. Suppose all five ranchers know that their land that Mariana needs is worth a total of $2 million. If each rancher agrees to sell his or her parcel of land to Mariana for $500,000, the economic pie will
A) grow by $500,000. B) grow by $1 million. C) grow by $2 million. D) shrink by $500,000.