If the demand curve is the same as the marginal benefit curve and the supply curve is the same as the marginal cost curve, then the quantity at which they cross is
i. the equilibrium quantity.
ii. the allocatively efficient quantity.
iii. the quantity with no deadweight loss.
A) i, ii, and iii.
B) only i.
C) only ii.
D) only i and ii.
E) only i and iii.
A
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Being a monopolist in the market
A. guarantees a positive short-run profit. B. guarantees a positive long-run profit. C. does not contradict with the rule that profit is maximized where MR = MC. D. All of these responses are correct.
If the economy in the graph shown is currently at point D, we can conclude the:
A. economy is in an economic boom.
B. government may want to enact contractionary fiscal policy.
C. unemployment rate is likely very low.
D. All of these are likely to be true.
Given that energy is an input in production, the development of a cheaper source of energy will result in:
a. a lower price level and a lower amount of production. b. a higher price level and a higher amount of production. c. a lower amount of production at every price level. d. a higher amount of production at every price level. e. a lower profit at every price level.
The euro floats against other currencies, but the member nations of the euro have no separate national money. For this reason, Spain, that uses the euro as its currency is listed under the managed float arrangement
a. True b. False Indicate whether the statement is true or false