Which of the following is a result of imposing a rent ceiling?
A) There is an increase in the quantity of apartments demanded.
B) The marginal benefit of the last apartment rented is less than the marginal cost of supplying it.
C) Some consumer surplus is converted to producer surplus.
D) There is an increase in the quantity of apartments supplied.
A
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A software design company wants to pursue a platform strategy. Which of the following strategies is the firm likely to want to adopt?
a. Focus on softening rivalry b. Encourage complementary innovation c. Encourage substitute innovation d. All of the above
Natural monopolies have all of the following characteristics except
a. relatively high fixed cost b. relatively low average variable cost c. low levels of production d. difficulty for new firms to enter e. only one firm can produce profitably
Contractionary monetary policy _____ consumption and _____ investment spending.
a) increases; increases b) decreases; increases c) increases; decreases d) decreases; decreases
Which of the following is NOT a characteristic of a centrally planned economy?
A. Consumers vote with their dollars thus guiding resources to produce what the society wants. B. Government sets the prices. C. The government decides how much of each good should be produced. D. All of these statements are characteristics of centrally planned economy.