A socially-optimal price regulation will NOT work if:
A) marginal cost is less than average total cost.
B) marginal cost is less than average fixed cost.
C) marginal cost is greater than average total cost.
D) marginal cost is greater than average fixed cost.
A
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Most favored nation (MFN) status means that a country treats another country
A) better than its other trading partners. B) the same as its other trading partners. C) worse than its other trading partners. D) any way it chooses since it is the "most favored nation." E) None of the above.
Applying a uniform markup to each of a firm's products is less profitable than varying the markup based on the elasticity of demand because the latter is able to exploit the sensitivity of quantity demanded to a change price
Indicate whether the statement is true or false
If the U.S. government decides to distribute surplus cheese to food banks for the homeless, the government is addressing the question of
a. which goods and services should be produced with society's scarce resources b. what production methods should be used to produce goods and services c. how will output be allocated among the individuals in the society d. what prices will be charged for goods and services e. determining the optimal degree of specialization
In which of the following cases would the quantity of money demanded be largest?
a. r = 0.03, P = 1.2 b. r = 0.03, P = 1.3 c. r = 0.04, P = 1.2 d. r = 0.05, P = 0.9