-Using the Above Figure, at Which Price Is There Neither

question 301

Multiple Choice

-Using the above figure, at which price is there neither excess quantity demanded nor excess quantity supplied?

• A) P1
• B) P2
• C) P3
• D) none of these

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Definitions:

Profit

The financial benefit realized when revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.

Total Output

The total amount of goods and services produced within an economy at a given overall price level in a given time period.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of the operation and output increases.

Coordination Problems

Challenges that arise in aligning the plans and actions of multiple parties in order to achieve a common goal or optimize outcomes.