At market equilibrium,
A) quantity demanded equals quantity supplied. B) shortages are greater than surpluses.
C) surpluses are greater than shortages. D) demand equals supply.
A
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Price discrimination is never perfect because:
A) it increases consumer surplus. B) it is regulated by the government. C) it lowers profits of producers to an extent. D) it is impossible to know consumers' willingness to pay.
The table above shows Tom's total utility from milkshakes and sodas. Tom's total budget for milkshakes and sodas is $20.00 per week. Milkshakes cost $2.00 each and sodas cost $1.00 each
What quantity of sodas does Tom purchase at his consumer equilibrium? A) five B) six C) seven D) eight
A monopolist can maximize profits by:
A. selling as much as he can produce. B. producing at the level of output at which MR = 0. C. following the same rules as a perfectly competitive firm. D. selling an output where P = ATC.
Since the late 1970s, the United States
A) has experienced only moderate inflation, usually between 2 to 3 percent. B) has seen a steadily increasing rate of inflation. C) has experienced low inflation, except for a seven-year period between 1979 and 1986. D) has experienced high inflation followed by a long period of deflation.