In the above figure, a surplus exists in the gasoline market when the price is

A) $1/gallon.
B) $2/gallon.
C) $4/gallon.
D) below $2/gallon.


C

Economics

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Setting price equal to marginal cost in a natural monopoly will lead to

a. excess profits for the firm. b. losses for the firm. c. zero profits for the firm. d. One cannot tell without further information.

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Irving Fisher derived the quantity theory of money from the equation of exchange. What two assumptions did he make to derive the theory and what is the basic assertion of the theory?

What will be an ideal response?

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Answer the following statement(s) true (T) or false (F)

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Economics