If, at the current price, there is a surplus of a good, then
a. the quantity supplied is greater than the quantity demanded.
b. the market must be in equilibrium
c. the price is below the equilibrium price.
d. quantity demanded equals quantity supplied.
a
You might also like to view...
The social cost attached to monopolies is reflected by the fact that
A) monopolies produce more output than consumers desire to buy. B) consumers pay prices that exceed the marginal cost of production. C) the demand for a monopolist's product is always lower than the demand for the products of perfectly competitive firms. D) consumers are always willing to pay lower prices for a monopolist's product than for the products of perfectly competitive firms.
Cartel members have an incentive to cheat on the cartel because:
a. the cartel does not maximize profits. b. the cartel price is the competitive price. c. each member's output quota is too high. d. each member's MR is not equal to the cartel's MC. e. the industry profit would be higher under competitive conditions.