The equilibrium price of a burger is $10, and the equilibrium quantity is 150 burgers. If the quantity of burgers sold increases to 200, the difference is a gain in net social welfare
a. True
b. False
Indicate whether the statement is true or false
False
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An attempt by a firm to create a monopoly and gain the economic profit from the monopoly is called
A) collusion. B) intrusion. C) profit seeking. D) rent seeking.
A period in which real GDP in the economy declines for at least six months is referred to as:
A. long term growth. B. a recession. C. a positive fluctuation. D. living standards.
Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. According to the share-the-gains, share-the-pain theory, we would expect
A. prices to increase by a little immediately and profits to decrease by a lot. B. a quick increase in price maintains profits in the industry. C. no increase in price. D. there will be some increase in price but not immediately.
If only two identical firms operate in a market, consumers prefer
A) a Cournot equilibrium. B) a Stackelberg equilibrium. C) a collusive equilibrium. D) any equilibrium since they all result in the same consumer surplus.