The above figure shows the market for steel ingots. The socially optimal quantity of steel is
A) 0 units.
B) 50 units.
C) 100 units.
D) produced if the market were competitive.
B
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Refer to Scenario 6.1. Suppose the friends are forced by government to combine their businesses and share what they make. With this revision to the scenario, the dominant strategy is for Tasha to work ________ and for Gloria to work ________
A) extremely hard; extremely hard B) extremely hard; somewhat hard C) somewhat hard; extremely hard D) somewhat hard; somewhat hard
If the account manager does NOT use a Federal Reserve reverse repurchase agreement or a matched sale-purchase transaction in carrying out open market operations, he will use
A) an outright purchase or sale. B) a limited-duration purchase or sale. C) an indirect purchase or sale. D) a reverse duration purchase or sale.
Relative to a competitive situation, if a market lacks competition, economic theory suggests that
a. output will be lower and price higher. b. output will be higher and price lower. c. both output and price will be higher. d. both output and price will be lower.
If the price elasticity of demand is infinite, demand is:
A. upward sloping. B. inelastic. C. elastic. D. perfectly elastic.