A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. If the market maker makes three transactions, what is his total profit?
a. $12
b. $15
c. $18
d. $21
c
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When natural or legal forces work to protect a firm from potential competitors, the market is said to have ________
A) non-competitive supply B) non-competitive entry C) barriers to entry D) restricted competition
Refer to Figure 15-10. Compared to a perfectly competitive market, consumer surplus is lower in a monopoly by an amount equal to the
A) area FGE. B) area FHE. C) area P1P2EF. D) area P1P2GF.
Suppose that the required reserve ratio is 10 percent and you withdraw $25,000 from Comerica Bank. What is the deposit multiplier? What is the total decrease in deposits in the banking system? What is the change in the money supply?
What will be an ideal response?
The statement "Every contract, combination in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce . . ." is found in the
A) Sherman Antitrust Act. B) Clayton Antitrust Act. C) Robinson-Patman Act. D) Interstate Commerce Commission Act.