When a market is in equilibrium:
A. both excess demand and excess supply are positive.
B. there is neither excess demand nor excess supply.
C. both excess demand and excess supply are positive and equal to each other.
D. there is either excess demand or excess supply.
Answer: B
Economics
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Hewlett-Packard will not raise the prices of its personal computers without first considering how Dell might respond. This is evidence of
A) collusion. B) cutthroat competition. C) price fixing. D) interdependence.
Economics
A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 ? Q. Which of the following is the marginal revenue function for the firm?
A. MR = 50 ? 2Q B. MR = 100 ? Q C. MR = 50 ? Q D. MR = 60 ? 2Q
Economics