Which of the following is the correct way to describe equilibrium in a market?
A) At equilibrium, market forces no longer apply.
B) At equilibrium, quantity demanded equals quantity supplied.
C) At equilibrium, demand equals supply.
D) At equilibrium, scarcity is eliminated.
B
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In a two product two country world, international trade can lead to increases in
A) consumer welfare only if output of both products is increased. B) output of both products and consumer welfare in both countries. C) total production of both products but not consumer welfare in both countries. D) consumer welfare in both countries but not total production of both products. E) prices of both goods in both countries.
A firm's resource at a given point in time can be defined as:
a. those investments made by it in profitable organizations. b. those tangible and intangible assets attached to it semipermanently. c. its ability to control the market price. d. its lobbying ability built over years of experience.
Which of the following is NOT a characteristic of a pure monopoly?
A. Firms cannot enter freely. B. Firms sell unique products. C. Firms can control a scarce resource. D. Firms are unable to acquire patents.
Suppose the domestic supply (QS) and demand (QD) for MP3 players in the United States is represented by the following set of equations:QS = -25 + 10PQD = 875 - 5PIf the United States can import MP3 players from the rest of the world at a per unit price of $50, what will be the total demand for MP3 players in the United States?
A. 475 B. 925 C. 550 D. 625