Which of the following situations could generate a shortage?
A) Demand for a good increases, resulting in a new higher market clearing price.
B) Demand for a good decreases, resulting in a new lower market clearing price.
C) Demand for a good increases, but the price is not permitted to rise.
D) Demand for a good decreases, but the price is not permitted to fall.
Answer: C
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Negative externalities might be reduced by letting people "work it out themselves," which might also be described as ________
A) substantiation. B) negotiation C) remuneration D) adjudication E) appropriate taxation
The vertical distance between a firm's total cost (TC) and its total variable cost (TVC) curves
A) decreases as output decreases. B) is equal to the average variable cost, AVC. C) is equal to the total fixed cost, TFC. D) is equal to the marginal cost, MC.
You work as a marketing analyst for a pharmaceutical firm, and you are trying to gather information about the marginal cost of production for a competing firm
You know that they have a patent on a popular medication that sells for $20 per dose, and you believe the elasticity of demand for this product is roughly -4. Assuming the competing firm acts as a profit-maximizing monopolist, what is the competing firm's approximate marginal cost of production? A) $10 per dose B) $12.50 per dose C) $15 per dose D) $20 per dose
The table below shows how the total cost of producing pottery vases varies with the number produced per day. The vases are sold in a perfectly competitive market, and the current equilibrium price is $50.
a. 4 vases per day. b. 2 vases per day. c. 5 vases per day. d. 3 vases per day. e. 1 vase per day.