One effect of government mandating participation in the auto insurance market is it leads to:
A. lower premiums for all participants.
B. the collapse of the market.
C. higher premiums for all participants.
D. free coverage for some participants.
Answer: A
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In monopolistically competitive markets in long run equilibrium: a. more than the efficient level of output will be produced because price exceeds marginal cost
b. less than the efficient level of output will be produced because price exceeds marginal cost. c. more than the efficient level of output will be produced because marginal revenue exceeds marginal cost. d. less than the efficient level of output will be produced because marginal revenue exceeds marginal cost.
The reduction in the market output resulting from the imposition of a price floor depends on both the price elasticity of demand and the price elasticity of supply.
Answer the following statement true (T) or false (F)