A decrease in supply results in a(n)
a. decrease in demand
b. increase in equilibrium quantity and a decrease in equilibrium price
c. decrease in equilibrium quantity and a decrease in equilibrium price
d. increase in demand
e. increase in equilibrium price and a decrease in equilibrium quantity
E
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Frank owns a dog-grooming business. Which of the following costs would be implicit costs? (i) dog shampoo (ii) rent on the storefront (iii) wages Frank could earn as a substitute elementary-school teacher (iv) interest that Frank's money was earning before he spent his savings to set up the dog-grooming business
a. (i) and (ii) only b. (iv) only c. (iii) and (iv) only d. (i), (ii), (iii), and (iv)
For a monopoly,
a. average revenue exceeds marginal revenue. b. average revenue equals marginal revenue. c. average revenue is less than marginal revenue. d. price equals marginal revenue.