Price floors are sometimes called price supports because they prevent a price from falling below a certain level
a. True
b. False
Indicate whether the statement is true or false
True
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If firms in a duopoly can successfully collude
A) each firm can earn an economic profit. B) the industry, that is, both firms taken together, can earn the maximum economic profit. C) the firms achieve a cooperative equilibrium. D) All of the above answers are true.
In the HO model, reciprocal demand leads to an equilibrium price by inducing changes in both demand and supply
Indicate whether the statement is true or false
The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 400, where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner. What is the coal mine's marginal expenditure function?
A. ME = 50Q + 10,000 B. ME = 100Q + 10,000 C. ME = 50Q + 20,000 D. ME = 100Q + 20,000
Quantitative easing involves all of the following except:
A. higher asset prices. B. Lower long-term interest rates. C. higher long-term interest rates. D. Purchasing longer-term bonds.