If 20 smoothies are sold at a market price of $5.50 each, then
a. there must not be an excess supply of smoothies
b. selling the 21st smoothie would be a Pareto improvement
c. the market must be perfectly competitive
d. the value to some individual of the 20th smoothie is $5.50
e. there must be an excess demand for smoothies
D
You might also like to view...
Compared to a monopolistic competitor, a monopolist faces
A) a more elastic demand curve. B) a more inelastic demand curve. C) a demand curve that has a price elasticity coefficient of zero. D) a more elastic demand curve at higher prices and a more inelastic demand curve at lower prices.
Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K and N each increase by 5 percent, and A is unchanged, by how much does Y increase?
A) 5% B) 10% C) 15% D) 20%