Equilibrium is the condition that exists
A. when quantity demanded equals quantity supplied.
B. when the demand curve intersects the price axis.
C. when the demand curve intersects the quantity axis.
D. whenever there is no government intervention in the market.
A. when quantity demanded equals quantity supplied.
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Insurance companies charge a lower premium to drivers who carry a higher deductible because
A) insurance companies are not profit maximizers. B) a driver's riskiness decreases as the driver's deductible increases. C) a high deductible signals a high risk. D) insurance companies prefer that drivers carry no deductible.
A monopoly firm is producing where its marginal revenue is equal to marginal cost. At this level of output, the firm's price is $3.75 and its average total cost is $4.50 . Is the firm earning a profit? Explain
How could this firm determine whether it should continue to operate in the short run or if it should shut down?
Refer to Figure 13-4. What is the area that represents the total variable cost of production?
A) 0P0aQa B) P0abP1 C) P1bdP3 D) 0P1bQa
Why are the prices of some regulated industries often higher than they would be if there were no regulation?
What will be an ideal response?