Test3_practicequestions(1)

01234512 6712872 1972 4 10

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Unformatted text preview: ' J=/*'!'* at !@'00/2.A!('0(=0'*-!*3-!,-',4-)@3*!0/..9! :2.4-1;!!! ULV!"!9FKS!!!#$K!GGG!!!FGG$!"!FGG! 6. If the !"#$%&!!! "($%$)*!+,-+!.,$/+!.0##(1!2034)*! ' 50)*+$"6!.+-+0*&!!! 3)4$"0*!78$+$"6! ' !"! ! #$%!! '(!)*+(,-./!)(+01)!/234(5!)*+(,-./!,26678!/234(5!01)!9*37)!,26678!/234(,!:*3!0!;**)! & 03(!;.4(1 !/234(,!03(!7.1(03=! The domestic!.1!-'(!0<*4(!:.;23(=!>77d-'('*9!/*1,2+(3!01)!63*)2/(3!a!nd w/'01;(s<(/02,(!*:!urves for a good demand curve, ! omestic supply?1.-.07785!-'( /*21-38!077*9,upply c curve, ,23672,! orld ! !.+6*3-,=! &'(1!.+6*3-,!03(!<011()=!@07/270-(! are given!<01=!the a/*21-38!figure.!9.-'!-'(!<01urves are!B'8A! Initially, the country allows imports. -'( in ?,!-'(! bove <(--(3!*:: All the c !*1!.+6*3-,A linear. >1,9(3C!!! are banned. !<(:*3(!-'(!<01! ow consumer GH$#H=E=!I3*)2/(3 surplus Then imports@*1,2+(3!,23672,Calculate h(D207,!=E!!!FE!!!FE!!!and producer!,23672,! change because of <(:*3(!-'(!<01!(D207, !!HE!!!HE!!!G!#H=E=!&*-07!,*/.07!9(7:03(! the ban. Is the country better!=E!!-'(!<01!(D207,!=Eban!!oE"!!!mports?(D207,,23672,!!&'(! !=E! off with the !!!E" ! n i G#HE"=!I3*)2/(3! !G!#HE= (D207, Why? /*1,2+(3!,23672,!0:-(3 !!E"!!!E"!!!G#HE"!0:-(3!-'(!<01=!&*-07!,*/.07!9(7:03(!(D207,!GHE""=!@*1,2+(3!,23672,! '0, )(/3(0,()!<8!G#EJH=E!01)!63*)2/(3!,23672,! import tariff when domestic 7. Explain why !a government would impose an'0,!.1/3(0,()!<8!GK!F=E!<(/02,(!*:!-'(! consumers suffer <01=!&*-07 more than producers!,*/.07!9(7:03(!'0,!)(/3(0,()!<8!GJ!E=!&'(!/*21-38!.,!9*3,(!*::!<(/02,(!-'(! gain? -*-07!,*/.07!9(7:03(!'0,!)(/3(0,()=! !"#$%&!!! "(#)*$+,!-"./!!0#12!"3!4"5$%$12! ' 6712.$"+! hy h4*19$"72 different marginal rates of substitution is necessary for trade to occur. 8. Explain w8.).72&!!!aving!:;$.$"+! #K%!! M670.1!9'8!0!;*4(31+(1-!9*27)!.+6*,(!01!.+6*3-!-03.::!9'(1!)*+(,-./!/*1,2+(3,!,2::(3! L 9. In a +*3(!-'01court case, a!n expert witness defined a monopoly as a firm that can ʺraise price recent !63*)2/(3,!;0.1A >1,9(3C!!! !-03.::!+08!<(!0!63*)2/-!*:!63*)2/(3!3(1-!,((N.1;=!L0/'!63*)2/(3!9.77!;0.1!0! &'( without reducing its!703;(!0+*21-!/*+603()!-*hat!7*,,!*:!(0/'!/*1,2+(3=!about the e+08!<(! of demand? 3(70-.4(78 total revenue.ʺ W !-'( does this imply &'(!63*)2/(3,! lasticity 0<7(!-*!/**3).10-(! for a ! rofit- 0/-.4.-.(,=!L0/'!/*1,2+(3!9.77!*178!7*,(!0! Would this definition hold-'(.3!3(1-p,((N.1;!maximizing monopoly? Explain. 3(70-.4(78!,+077!0+*21-!,*!.-!.,!217.N(78!-'0-!/*1,2+(3,!9.77!/**3).10-(!0!63*-(,-!-*!-'(! -03.::=! !"#$%&!!! "(#)*$+,!-"./!!0#12!"3!4"5$%$12! ' 6712.$"+!8.).72&!!! *19$"72!:;$.$"+! 4 10. The average cost for a typical electric-power-production firm is AC = 100 - 10Q + Q2 where Q is measured in billion kilowatt h...
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