The equilibrium price in a market occurs where the:
A) market demand and the firms' average cost curves intersect.
B) market supply and the firms' average cost curves intersect.
C) market demand and the market supply curves intersect.
D) market supply and the firms' revenue curves intersect.
C
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The above figure shows the Lorenz curve for wealth for the nation of Rusha. If the government were to confiscate half of the wealth from the wealthiest twenty percent of the population and give it to the poorest twenty percent, then
A) wealth distribution would be more equal. B) wealth distribution would be unchanged. C) wealth distribution would be more unequal. D) the Lorenz curve would shift rightward.
Statistical studies suggest that the cost of direct controls for any target level of pollution is
A. much higher than the cost of taxes on emissions. B. about the same as the cost of taxes on emissions. C. lower than the cost of taxes on emissions. D. impossible to compare to the cost of taxes on emissions.
One of the potential negative side-effects of pay in the form of sales commissions is:
A. a greater incentive for sales people to engage in unethical or fraudulent sales practices that may eventually cause legal problems for the firm. B. increased volatility of sales revenue for the firm. C. the potential that pay levels may get so high that they will increase a firm's marginal wage cost more than its marginal revenue product. D. an increased likelihood of shirking by workers.
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.