Refer to the above figure. A shortage occurs if the government imposes
A) a price floor at $60.
B) a price floor at $20.
C) a price ceiling at $60.
D) a price ceiling at $20.
D
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Which of the following statements is true?
A) In the long run, a firm cannot vary any of its inputs. B) In the long run, a firm can vary all its inputs. C) In the short run, a firm cannot vary any of its inputs. D) In the short run, a firm can vary all its inputs.
If a country experiences economies of scale in the production of a good, it implies that ______________
Fill in the blank(s) with the appropriate word(s).
What does willingness to pay measure?
a) the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it b) the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept c) the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept d) the maximum amount that a buyer will pay for a good
Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
Which of the following statements is true?
A. For Lee, seeing a documentary is a dominant strategy. B. Lee's dominant strategy depends on Jordan's choice. C. For Lee, seeing a comedy is a dominant strategy. D. Lee does not have a dominant strategy.