Use the above figure. The profit-maximizing price will be
A. P1.
B. P2.
C. P3.
D. P4.
Answer: C
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Which of the following statements is true about public goods?
a. They are always produced by the government. b. The market-determined output is efficient. c. The government can hire a private entity to produce a public good. d. Nonexcludability is sufficient condition for a good to classified as a public good.
Human capital is the equipment and machinery used directly by workers
a. True b. False
When a commercial bank borrows from the Fed,
A) the reserves of the bank fall. B) the bank can make more loans. C) it must be because the bank is not meeting its reserve requirements. D) the money supply falls.
Industries X and Y both have four-firm concentration ratios of 65 percent, but the Herfindahl index for X is 1,500 while that for Y is 2,000. These data suggest:
A. greater market power in X than in Y. B. greater market power in Y than in X. C. that X is more technologically progressive than Y. D. that price competition is stronger in Y than in X.