What is the type of economic system that relies on one central authority to make economic decisions?
A) free market
B) price system
C) command and control
D) mixed economic system
Answer: C
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Price discrimination
A) eliminates the producer surplus. B) turns consumer surplus into producer surplus. C) decreases output below the profit-maximizing level. D) lowers a monopoly's economic profit.
Firms in an oligopoly market can potentially earn economic profits.
a. ?In the short run, but not the long run. b. ?In the long run, but not the short run. c. ?In both the short run and long run d. ?In neither the short run nor the long run
Factors affecting the price elasticity of demand include all of these EXCEPT:
a. percentage of the consumer's budget b. the availability and closeness of substitutes c. positioning as income inferior d. time period of adjustment e. all of the above affect the price elasticity of demand
A firm in a perfectly competitive market
a. can raise the price to sell more but by selling more will end up earning less economic profit than it had earned before the price increase b. can cut the price to sell more but by selling more will end up earning less economic profit than it had earned before the price cut c. can increase its supply to lower the price and thereby raise its economic profit d. can decrease its supply to raise the price and thereby raise its economic profit e. is a price taker, that is, accepts the market price for its good as given