Author Question: Price ceilings often generate A) market clearing prices. B) rapid increases in supply to meet ... (Read 201 times)

burton19126 · **on:** Jun 29, 2018

Price ceilings often generate

A) market clearing prices.
B) rapid increases in supply to meet the excess demand.
C) equilibriums that utilize rationing by price.
D) black markets.

Question 2

The existence of economies of scale is one reason oligopolies exist because

A) a firm is able to increase price leading to increased profits.
B) the marginal cost decreases as output increases.
C) of strategic dependence.
D) as output increases average total cost decreases leading to large-scale firms.