When the ____________establishes new regulations, the cost of production can be affected.
Fill in the blank(s) with the appropriate word(s).
Ans: government
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In a market economy, which of the following will most likely cause a prolonged milk shortage?
a. an increase in the demand for milk b. an increase in the supply of milk c. imposition of a price floor above the equilibrium price of milk d. imposition of a price ceiling below the equilibrium price of milk
Refer to Figure 15-2. If the firm's average total cost curve is ATC2, the firm will
A) suffer a loss.
B) break even.
C) make a profit.
D) face competition.
In the above figure, if output is 30 units, then the total deadweight loss is
A) $5. B) $10. C) $20. D) $60.
In a price leadership oligopoly model,
a. a cartel of leading firms determines price and industry output b. the leading firm colludes on price with each of the other firms and in this way has primary decision-making powers over price c. one firm is the price leader and all other firms in the industry follow d. the firm that leads abandons the profit-maximizing goal e. the leader firm produces where MR = MC, and all others produce where P = ATC