One of the important differences between binding and not binding price ceiling is that a binding price ceiling is set above the equilibrium price, while a not binding price ceiling is set below the equilibrium price
a. True
b. False
Indicate whether the statement is true or false
False
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Best Ink and Ink Jets are two ink suppliers that are competing with each other. If Best Ink announces an upcoming price change next month, it may be signaling to Ink Jets its intent to engage in ________.
A) a Cournot oligopoly B) a Stackelberg oligopoly C) a Chamberlin oligopoly D) tacit collusion
In the above figure for a monopolistically competitive firm, the total economic profit at the profit-maximizing point is
A) $0. B) $240. C) $360. D) $300.
If the price of bonds rises,
a. the Fed will decrease the money supply b. the Fed will increase the money supply c. the interest rate will rise d. the interest rate will fall e. inflation must be accelerating
No deadweight loss and no underproduction
What will be an ideal response?