The government of a country Amenia imposes a ceiling on the price of bread. Which of the following is most likely to be true?
a. It implies that the price of bread prevalent in Amenia is higher than what the equilibrium price would have been.
b. Imposing this price ceiling is likely to raise economic welfare in Amenia as the government tries to ensure that most people can at least afford bread.
c. It will cause an excess demand for bread in the market.
d. The market is likely to remain in equilibrium even after the price ceiling is imposed.
c
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The opportunity cost of your college education is
a. the cost of the textbooks you buy at the bookstore b. the grades you receive in your courses c. the actual dollar cost of your college education d. your best alternative use of the money you spend for a college education e. the income you earn while going to college
When a profit-maximizing firm is earning profits, those profits can be identified by
a. P × Q. b. (MC - AVC) × Q. c. (P - ATC) × Q. d. (P - AVC) × Q.