The income elasticity of demand for all goods taken together must be
A) zero.
B) -1.
C) +1.
D) between 0 and 1.
C
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When price is less than the firms' minimum average total cost, ________
A) new firms will enter the market B) existing firms will leave the market C) prices are likely to fall further D) firms' profits are likely to be maximum
In the long-run equilibrium in a perfectly competitive market, the firms produce at the ________ possible average total cost and the price equals the ________ possible average total cost
A) highest; highest B) lowest; lowest C) highest; lowest D) lowest; highest
Which of the following is not likely to be a government objective?
a) Increasing employment b) Increasing economic growth c) Increasing government spending d) Increasing the level of exports
In this graph, expanding output to 5 million units causes a ______.
a. deadweight loss of area ECD
b. deadweight loss of area AEB
c. consumer surplus of area ECD
d. producer surplus of area AEB