Basic Economic Concepts
If a perfectly competitive firm is operating at a point inside its production possibility curve due to underutilized resources, which of the following outcomes is the firm most likely to pursue in the short run?
What type of market has few large producers who may collude to set prices or outputs?
What term describes a situation where an increase in income leads to a less than proportional increase in the demand for normal goods?
In which market structure would you expect consumer welfare to be highest due to competitive pricing and variety of choice?
How does the introduction of an effective price floor above equilibrium price influence a monopoly's position relative to its production possibilities curve?
What would happen if government subsidies were removed from university tuition fees?
If a new technology lowers the cost of producing smartphones, how will this affect the smartphone supply curve?
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How would total revenue change if a firm with monopoly power selling an inelastic product decides to decrease its prices?
What market structure is characterized by a large number of small firms, identical products, and easy entry and exit from the market?
How might government subsidies for renewable energy impact energy markets?