The imposition of price ceilings on a market often results in
a. an increase in investment in the industry.
b. a persistent surplus in the market.
c. the diversion of income toward black-market suppliers.
d. lower prices being offered on the black market.
c
Economics
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If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then the deadweight loss from monopoly equals
A) $21. B) $441. C) $882. D) $1,764.
Economics
If a firm is able to charge a higher price for its output, all else equal, the value of the marginal product of labor will decrease to offset the higher price
a. True b. False Indicate whether the statement is true or false
Economics