An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are given by Cd = 3000 - 2000r + 0.10Y Id = 1000 - 4000rwhere Y is output and r is the real interest rate. The real interest rate that clears the goods market is equal to

In the figure above, when production is 3 units with a price of $3, the consumer surplus equals

A) a + b. B) a + b + f + g. C) a + b + f + g + h + l. D) a + b + f + g + h + l + i + m.

Refer to Figure 15-15. Erickson Power is a natural monopoly because

A) average total cost is still declining when it intersects demand. B) of its continually declining marginal revenue curve as output rises. C) it is a power company and all power companies are natural monopolies. D) its marginal cost lies entirely below its long-run average cost.