Refer to the figure below.
When the market is unregulated, consumer surplus is represented by the area:
A. AGI
B. DBC
C. ABC
D. AJE
Answer: C
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Property rights are limited to tangible items such as land and machinery
Indicate whether the statement is true or false
How has growth in M2 minus the growth in real GDP compared to the inflation rate in the United States?
What will be an ideal response?
When a firm leaves a perfectly competitive industry,
A. the individual demand curves facing remaining firms shift toward the point of minimum average cost in the long run. B. short-run industry equilibrium is reestablished at a new point along the original short-run industry supply curve. C. the short-run industry supply curve shifts to the right. D. at the new long-run equilibrium, the remaining firms in the industry will each receive a higher profit.
Exhibit 11-5 A perfectly competitive labor market Quantity of Labor (thousands) Marginal Revenue Product Wage Rate 5 $25.00$ 5.00 10 20.0010.00 1515.0015.00 2010.0020.00 255.0025.00? ? In Exhibit 11-5, when the marginal revenue product is $20.00, firms should
A. continue hiring workers. B. stop hiring workers. C. start firing workers. D. pay a wage above $15.00 to its workers