Which of the following statements about the effects of rent control is correct?
a. The short-run effect of rent control is a surplus of apartments, and the long-run effect of rent control is a shortage of apartments.
b. The short-run effect of rent control is a relatively small shortage of apartments, and the long-run effect of rent control is a larger shortage of apartments.
c. In the long run, rent control leads to a shortage of apartments and an improvement in the quality of available apartments.
d. The effects of rent control are very noticeable to the public in the short run because the primary effects of rent control occur very quickly.
b
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In the long run inflation is explained by __________. For countries that had hyperinflation this source of inflation arose primarily because the government __________
Fill in the blank(s) with correct word
Mike, of Mike's Machines has hired a consultant who informs Mike that since the total revenue from current operations exceeds total cost, he should consider increasing production of machines. Mike would be best off if he
a. increases production of machines until total revenue is equal to total cost. b. increases production until net gains are equal to zero. c. maintains his current level of production so long as marginal revenue is equal to marginal cost. d. decreases his current level of production if marginal revenue is equal to marginal cost.