Which of the following is true when an economy is in long-run equilibrium?
What will be an ideal response?
Actual output must equal potential output.
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Refer to Figure 12-10. The firm's short-run supply curve is its
A) marginal cost curve. B) marginal cost curve from d and above. C) marginal cost curve from b and above. D) marginal cost curve from c and above.
Price discrimination results in _____________ than would be observed under a single-price monopoly
a. higher output and lower costs b. lower output and higher costs c. higher output and higher costs d. lower output and lower costs
Suppose that the City of Arcata, California, imposes rent control so that rents cannot exceed $500 per month on one bedroom rental units. Suppose that $500 had also been the equilibrium rental price in Arcata before a huge new apartment complex was built in the nearby town of McKinleyville, where rents are $400 per month. Which of the following is most likely to be true?
a. There will be a lasting surplus of rental housing in Arcata after the new apartment complex is built in McKinleyville. b. There will be a shortage of rental housing in Arcata at the rent-control price of $500. c. The equilibrium rental price in Arcata will fall below $500, and thus rent control will not affect the rental market in Arcata. d. The equilibrium price of $500 per month in Arcata will not change.
The conundrum between valuable water and a relatively unusable diamond is explained by the
a) Paradox of life. b) Paradox of count. c) Paradox of utility. d) Paradox of value.