The demand for computers is derived from the demand for the capital resources that are used to produce computers.
Indicate whether the statement is true or false
Answer: False
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Refer to Price Ceiling. Area B + D represents
The following questions refer to the accompanying diagram which shows the effects of a price ceiling. The initial price and quantity are P0 and Q0, respectively, and the price ceiling is imposed at the price P1. Assume that none of the potential deadweight loss can be avoided.
a. the deadweight loss due to the price ceiling.
b. the fall in consumers' surplus caused by the imposition of the price ceiling.
c. the value of the time and resources spent by consumers to acquire the limited supply.
d. the post-ceiling profits earned by the producers of the good.
Pizza and tacos are substitutes, and the price of a pizza increases. Which of the following correctly indicates what happens?
A) The demand for pizzas decreases and the demand for tacos increases. B) The demand for both goods decreases. C) The quantity of tacos demanded increases and the quantity of pizza demanded decreases. D) The quantity of pizza demanded decreases and the demand for tacos increases. E) The demand for each decreases because both are normal goods.
A merger between two companies in unrelated fields of business
A) will always lead to economies of scale. B) will generally increase the value of the unified firm compared to the value of the two companies before the merger because of the benefits of diversification. C) may not have any synergistic effects. D) will necessarily lead to an increase in the market power of the merged company.
In a game that can be repeated, the optimal solution is
a. dependent upon each firm's decision in the first round of decision making b. independent of the decisions that competitive firms made on the first round c. to maximize profits regardless of what competitors do d. to minimize costs regardless of what competitors do e. to select the solution that minimizes the potential losses from a decision