If government imposes a price ceiling on a good that is below the market equilibrium price
A) a surplus will develop.
B) a shortage will develop.
C) producers will reduce their sales price.
D) consumers will reduce their demand for the good.
B
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The marginal cost is the
a. same as the variable cost when output is increasing b. change in total cost as the quantity changes by one unit c. change in average variable cost as the quantity changes by one unit d. change in total fixed cost as the quantity changes by one unit e. same as the fixed cost when average fixed cost is at a minimum
If the credits for a principles of economics section is three units and an instructor teaches two sections with 100 students in each and tuition and fees at your university are $40 per unit. If the instructor is paid $ 30,000 to teach both classes, should the university hire the instructor?
A. Yes, the MRP of the instructor is higher than the wage. B. Yes, the wage is higher than the instructor's MRP. C. No, the MRP of the instructor is higher than the wage. D. No, the wage is higher than the instructor's MRP.