If M doubled and V fell by 50%, what would happen to PQ?
What will be an ideal response?
PQ would remain the same.
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Refer to Scenario 2.1. What is the equilibrium price of books?
A) 5 B) 10 C) 15 D) 20 E) none of the above
All of the following are problems associated with maintaining a cartel except that:
a. cartels are illegal. b. a large amount of information is needed to coordinate a cartel. c. profits are not maximized by a cartel so it will evolve into a monopoly. d. each member of the cartel has an incentive to "chisel" by expanding output.
What major historical event led to the most significant challenge to classical economic thinking?
a. The war on poverty b. The American Revolution c. World War II d. The Great Depression e. The oil shocks of the 1970s
If a competitive firm is in short-run equilibrium, then:
A. marginal revenue is equal to marginal cost. B. price is greater than marginal cost. C. price is equal to average variable cost. D. price is greater than marginal revenue.