If a price ceiling is imposed, then:
a. the market supply curve will shift to the right.
b. the market demand will shift to the left.
c. a shortage of product will result.
d. the government would be required to buy-up the surplus product.
e. the market equilibrium price is below the level the government wishes to achieve.
c
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If the marginal cost of a perfectly competitive firm producing a good is $50 and the market price of the good is $100, the firm should:
A) decrease its output. B) increase its output. C) try to increase the market price. D) try to decrease the market price.
James used $200,000 from his savings account that paid an annual interest of 10% to purchase a hardware store. After one year, James sold the business for 300,000 . His accounting profit is:
a. $300,000 b. $100,000 c. $80,000 d. $20,000
Cost-reduction generates
a. Increases in long-run profitability b. Increases in long-run profitability only if the cost reduction is difficult to imitate c. Decreases in long run profitability d. No change in profitability
Each firm in a cartel has an incentive to chisel because market price exceeds:
a. marginal cost. b. average cost. c. average variable cost. d. average fixed cost.