Short-run aggregate supply:
a. is a fixed volume of output
b. reflects how much RGDP suppliers are willing and able to produce at different price levels.
c. shifts only when the LRAS shifts.
d. is not affected at all by the price level.
b
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Monopolistic competition is characterized by excess capacity because
A. firms charge a price that is greater than marginal cost. B. firms produce at an output level less than the least-cost output. C. firms are always profitable in the long run. D. the demand for a product is perfectly elastic in this type of industry.
Refer to Figure 15-19 to answer the following questions
a. What quantity will this monopoly produce and what price will it charge? b. Suppose the monopoly is regulated. If the regulatory agency wants to achieve economic efficiency, what price should it require the monopoly to charge? c. To achieve economic efficiency, what quantity will the regulated monopoly produce? d. Will the regulated monopoly make a profit if it charges the price that will achieve economic efficiency? e. Suppose the government decides to regulate the monopoly by imposing a price ceiling of $35. What quantity will the monopoly produce and what price will the monopoly charge? f. With the price ceiling of $35, what profit will the monopoly earn?
When all players in a game choose the best strategy they can, given the choices of all other players, it is always a:
A. Nash equilibrium. B. positive-positive outcome. C. cooperative equilibrium. D. negative-negative equilibrium.
In a market system, ________ provide signals about whether resources are relatively scarce or abundant
A) prices B) buyers alone C) government officials D) scientists