In the above figure, a regulation requiring average cost pricing would force the firm to produce at output level
A. Q1.
B. Q2.
C. Q3.
D. Q4.
Answer: D
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The transitional gains trap is a _____
a. by-product of some types of regulation b. associated with the move from a socialist to a market society c. associated with the move from a communal to a socialist society d. by-product of changing the rate at which capital gains are taxed
____ completely deplete the most vital resources
a. We are not going to b. In the near future we will c. We are eventually going to d. We have already begun to
If the general level of prices is lower than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?
a. an economic boom b. highly attractive profit margins c. output less than the economy's long-run potential d. a sharp increase in imports
If bagels and croissants are substitute goods, which of the following is likely to occur if the price of bagels has decreased?
A) The demand curve for bagels shifts to the right. B) A leftward movement along the bagel demand curve. C) The demand curve for croissants shifts to the right. D) The demand curve for croissants shifts to the left.