Which of the following government programs will NOT create a surplus?
A. farm price support payments
B. the minimum wage law
C. usury laws
D. a price floor above the equilibrium price
C. usury laws
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Suppose a monopolist sells in two distinct markets. The demand and marginal revenue for the first market are given by P1 = 240 - 2Q1 and MR1 = 240 - 4Q1, respectively, where Q1 is the quantity demanded and P1 is the price paid by the first group. The demand and marginal revenue for the second market are given by P2 = 120 - Q2 and MR2 = 120 - 2Q2, respectively, where Q2 is the quantity demanded and P2 is the price paid by the second group. The monopoly's marginal cost is given by MC = 4/9 Q, where Q is the total output produced by the monopoly.
(i) How much does the monopoly supply in each market and what price does it charge? (ii) What is the common equilibrium value of marginal revenue and marginal cost? (iii) Use your answers to parts i and ii to calculate the elasticity of demand for each market.
Refer to Table 9-9. Fill in the following table with the opportunity costs of producing light bulbs and flash drives for Mexico and Canada
Light Bulbs Flash Drives Mexico Canada
The federal minimum wage law seeks to
a. maximize employment for low wage occupations. b. shift employment from low wage to high wage industries. c. create a floor for wages. d. index wages to the CPI.
What is the difference between a business cycle and the day-to-day ups and downs of the market?
What will be an ideal response?