Refer to the graph below for a pure monopoly. If the government regulated the monopoly and made it produce the level of output that would achieve allocative efficiency, what price and quantity levels would we observe in the short run?
A. P1 and Q1
B. P2 and Q3
C. P3 and Q2
D. P4 and Q1
B. P2 and Q3
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If computers and software are complements, then
A) a fall in the price of computers will increase the demand for software and, ceteris paribus, the price of software will rise. B) a rise in the price of computers will decrease the demand for software and, ceteris paribus, the price of software will rise. C) a fall in the price of computers will decrease the demand for software and, ceteris paribus, the price of software will fall. D) a rise in the price of software will increase the demand for computers and, ceteris paribus, the price of computers will rise. E) a fall in the price of software will decrease the demand for computers and, ceteris paribus, the price of computers will fall.
Personal income and Social Security payroll taxes are currently the largest sources of government revenue.
A. True B. False C. Uncertain
The short position in a futures contract is the party that will:
A. deliver a commodity or financial instrument to the buyer at a future date. B. accept the risk. C. benefit from increases in price of the underlying asset. D. suffer the loss.
Which of the following statements is correct?
A. The price support program hastened the exodus of resources from agriculture. B. The main beneficiaries of government price support assistance were the very low-income farmers. C. If the demand for agricultural products is inelastic, a relatively small decrease in supply will increase gross farm incomes. D. There is a misallocation of resources in rural America because of absolute and relative increases in the size of the farm population.