An effective price ceiling occurs when
A. the government sets a maximum price for a good above the equilibrium price.
B. the government sets a maximum price for a good below the equilibrium price.
C. the government sets a minimum price for a good below the equilibrium price.
D. the government sets a minimum price for a good above the equilibrium price.
Answer: B
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The profit-maximizing monopolist, faced with a negative-sloping demand curve, will always produce:
a. at an output greater than the output where average costs are minimized b. at an output short of that output where average costs are minimized c. at an output equal to industry output under pure competition d. a and c e. none of the above
As output and employment contracted during the early 1930s, policy makers
A) reduced tariffs but increased tax rates. B) reduced both tariffs and tax rates. C) imposed higher tariffs and reduced tax rates. D) increased both tariffs and tax rates.
Transitions from one technology to another can be easier for a network industry when frequency is not actually owned by those with rights to use it
Indicate whether the statement is true or false
With which choice are you more likely to avoid Bid-rigging cartels?
a. Holding English auctions b. Holding sealed-bid auctions c. Holding oral auctions d. All of the above