Suppose the equilibrium price of movie tickets is $10. If the supply curve for movies shifts ________, the equilibrium price will ________
A) rightward; decrease
B) leftward; decrease
C) rightward; increase
D) leftward; not change
E) rightward; not change
A
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The additional cost to a firm of producing one more unit of a good or service is the
A) total cost. B) opportunity cost. C) marginal cost. D) minimum cost.
The North American Free Trade Agreement is an example of
A) a beggar-thy-neighbor trade policy. B) a preferential trade arrangement. C) a multinational quota system. D) a general agreement on tariffs and trade.
An example of a commitment device would be:
A. a swear jar that you and your friends agree must be paid $5 each time someone swears. B. putting a note on the cookie jar that you want to lose weight. C. buying yourself an ice cream after going to the gym. D. All of these are examples of commitment devices.
Refer to the following graph.
Suppose this diagram represents a monopolist with a patent. What is the maximum the monopolist would be willing to spend to defend its patent?
A. Area D B. Area A C. Area A and B D. Area B