A monopoly faces an inverse demand curve of P = 100 - 2Q. The marginal cost curve is MC = .5Q. What government price ceiling would represent optimal price regulation?
What will be an ideal response?
Question 2
Suppose the long-run supply curve for a perfectly competitive industry is horizontal at a price of 12, and the minimum short-run average variable cost for each of the identical N firms in the industry is 8. If the demand curve for the industry decreases so that it intersects the short-run supply curve of the industry at 10,
A) in the short run the price will decrease to 10, and the number of firms will still be N. In the long run the price will return to 12, and the number of firms will be less than N.
B) in the short run the price will decrease to 10, and the number of firms will be less than N. In the long run the price will return to 12, and the number of firms will return to N.
C) in the short run the price will remain at 12, and the number of firms will still be N. In the long run the price will fall to 8, and the number of firms will be less than N.
D) In the short run the price will decrease to 10, and the number of firms will be less than N. In the long run the price will return to 12, and the number of firms will return to N.
The S-curve in the human vertebral column--a result of the evolution of bipedality--makes humans hig
Monopoly, patented in 1935, was an instant best-seller: Players risk all their assets in an attempt
Attention and memory are in demand during circle time.
Hockey stick” curve
The Frequency Distribution Curve of a Drug
A cowbird with its foster parent. A female cowbird minimizes her cost of parental care by laying her