It is difficult in a natural monopoly market for the firm to achieve both efficiency and zero economic profit simultaneously, even with regulation
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Tax Problem. The deadweight loss due to a $10 per unit consumption tax is
Consider a perfectly competitive market were demand is Q = 100 - P and Supply is Q = P - 10. a. zero. b. $10. c. $25. d. $50.
An intertemporal budget constraint ________
A) describes how much time an individual consumer has to spend their disposable net national product B) is independent of the real interest rate and wealth of the household C) divides consumption spending into three categories: spending on durables, non-durables and services D) describes how much a person can consume today versus tomorrow
Use the following graph, which shows an aggregate demand curve, to answer the next question,
If the price level decreases from 200 to 100, the real output demanded will ________.
A. increase by $800 billion B. decrease by $600 billion C. increase by $200 billion D. decrease by $200 billion
An effective price ceiling must be set
A. at the equilibrium price. B. either at or above the equilibrium price. C. above the equilibrium price. D. below the equilibrium price.