Assume a market price gets set artificially high-that is, it gets set above the equilibrium price. This change means:
A. Every consumer loses surplus, and it all gets transferred to producers.
B. Every producer gains surplus, due to the higher price now being charged.
C. Some consumers drop out of the market, and those left lose some surplus.
D. None of these is true.
C. Some consumers drop out of the market, and those left lose some surplus.
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Everything else held constant, a decrease in net exports ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
If a production function is given by the equation Q = 12X + 10X2 - X3, where Q = Output and X = Input, then calculate the equations for
a. average product b. marginal product c. point of diminishing average returns d. point of diminishing marginal returns