Compared to the profit-maximizing outcome, marginal cost pricing in natural monopoly leads to
a. reduced demand
b. higher price
c. reduced consumer surplus
d. more economic profit
e. greater output
E
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The diagram above illustrates the market for apartments in Victoria, British Columbia
a) If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b) What is the equilibrium rent and quantity of apartments?
The quantity theory of money addresses the
A) long-run effect the quantity of money has on the price level. B) determinants of potential GDP. C) determinants of the equilibrium unemployment rate. D) short-run effect the quantity of money has on the price level.
Which of the following is not an advantage of starting a new business as a sole proprietorship?
A) the initial cost in setting up the business B) limited control over the operation of the business C) separation of ownership and business liability D) possibility of double taxation
A recessionary gap results when
A. aggregate demand is above the level consistent with full employment. B. aggregate demand is below the level consistent with full employment. C. aggregate supply and aggregate demand are not in short-run equilibrium. D. aggregate supply decreases.