?
In Exhibit 3-7, if price happened to currently be $25 in this market, a _______ would result, causing a _______ in price.
A. shortage; increase
B. shortage; decrease
C. surplus; increase
D. surplus; decrease
Answer: A
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Claude's Copper Clappers sells clappers for $65 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is $65, average variable cost is $45, and average total cost is $67 . To maximize his profit or minimize his loss, Claude should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price
Figure 17-10
Refer to . With trade and without a tariff, the price and domestic quantity demanded are
a.
P1 and Q1.
b.
P1 and Q4.
c.
P2 and Q2.
d.
P2 and Q3.
Explain how the aggregate demand and aggregate supply model can be made more dynamic
What will be an ideal response?
Inter industry competition refers to the fact that:
A. Monopolistic producers establish a common price for their products B. Products are identical in a purely competitive industry C. Firms which sell a product at one stage of production buy materials and parts from other firms at prior stages of production D. In some markets the producers of a certain commodity might face competition from products of other industries