Suppose that Figure 10.5 shows an industry's market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, the consumer surplus would be:
A. $2,450.
B. $1,225.
C. $612.50.
D. $262.50.
Answer: A
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Indicate whether the statement is true or false
If a $5,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity is
A) 0 percent. B) 5 percent. C) 10 percent. D) 20 percent.
What determines whether the industry long-run supply curve is upward sloping or horizontal?
What will be an ideal response?
A period of time against which costs of the market basket in other periods will be compared in computing a price index is called
A. the inflation period. B. the market basket. C. the adjustment period. D. the base period.