Rent controls are examples of which of the following?
a. price ceilings
b. price floors
c. equilibrium prices
d. subsidies
a. price ceilings
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If the owner of a local movie theater wanted to increase the theater's total revenue from movie admissions, what should the owner do with ticket prices?
What will be an ideal response?
Price will be higher and output will be lower under monopoly than under perfect competition with the same demand and cost conditions
Indicate whether the statement is true or false
The utility-maximizing rule:
A) is inconsistent with the law of demand. C) implies a leftward shifting demand curve. B) implies a perfectly elastic demand curve. D) is consistent with the law of demand.
Refer to the graph shown. Suppose the market price is $4. At this price, a perfectly competitive firm should:
A. shut down in the short run but continue production in the long run. B. continue to produce in the short run but shut down in the long run. C. continue to produce in both the short run and the long run. D. shut down immediately.