Refer to Figure 6.4. If a market experiences excess supply and fails to maximize total surplus, a minimum price must have been set at:
A. A.
B. B.
C. C.
D. There is not sufficient information.
Answer: A
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An association of producers such as OPEC that agrees to set common pricing or output goals is referred to as a
A) cartel. B) conglomerate. C) monopoly. D) partnership.
A firm's employment of labor outside the country in which the firm is located is called
A) featherbedding. B) a lockout. C) outsourcing. D) dumping.
Which national income account should be examined to discover trends in the after-tax income that people have to save and spend?
a. Gross domestic product (GDP). b. Personal income (PI). c. National income (NI). d. Disposable personal income (DI).
Which of the following is true for a monopolistically competitive firm in long-run equilibrium?
A) P = ATC and MR = MC. B) P = ATC and P = MC. C) P > ATC and P > MR. D) P > MR and MC = ATC.