Profits can be maximized by equating MR = MC = Price
A) only in perfectly competitive markets.
B) only in monopoly markets.
C) only in discriminating monopoly markets.
D) only with government price controls.
A
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Because of unseasonably cold weather, orange crops were destroyed in Florida. This statement indicates that
A. the demand for apple juice will decrease. B. the amount of orange juice will decrease. C. demand for oranges will necessarily rise. D. equilibrium quantity of oranges will rise.
Briefly describe the concept of the "invisible hand."
What will be an ideal response?
When there few close substitutes available for a good, demand tends to be
A) relatively elastic. B) perfectly elastic. C) relatively inelastic. D) perfectly inelastic.
At a price above the equilibrium price, there is
A) a shortage. B) a surplus. C) excess demand. D) super-equilibrium. E) none of the above