Refer to the figure above. When the demand curve for gas is D2 and the supply curve for gas is S, the surplus in the market when price is $8 is:
A) 20 gallons. B) 55 gallons. C) 25 gallons. D) 50 gallons.
D
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In the long-run average cost function, only the amount of capital is allowed to vary
Indicate whether the statement is true or false
Which of the following measures is used by the Justice Department to evaluate the competitive effects of proposed mergers?
A) The Lerner Index. B) The eight-firm concentration ratio for an industry. C) The four-firm concentration ratio for an industry. D) The Herfindahl-Hirschman Index.
In a study of whether prices are sticky or not, Alan Blinder supervised interviews of corporate executives on the frequency with which their firms change prices and found that
a. 55 percent of firms changed prices only once a year or less. b. over 20 percent of the firms changed prices more than 12 times per year. c. 10 percent of companies changed prices 4 to 12 times per year. d. there is not a considerable departure from auction-market behavior.
Costs that are borne solely by the individuals who incur them are
A. transaction costs. B. external costs. C. social costs. D. private costs.