Refer to Figure 9-1. Without trade, consumer surplus is
Refer to Figure 9-1. Without trade producer surplus is
Refer to Figure 9-1. With free trade, this country will
Import 40 baskets.
The figure below illustrates the cost and revenue structure for a monopoly firm.
If the monopoly firm wants to maximize its profit, it should operate at a level of
output equal to
Which of the following statements is correct?
A competitive fir
What is the marginal revenue from selling the 5 th shirt?
Some reasons that firms may experience diseconomies of scale includ
A merger between two firms is
Only illegal if it substantially lessons competition.
Forbidden by the Federal Trade Commission Act.
Forbidden by the Sherman Act.
International trade causes:
Decreased world output of goods and services.
Demand is said to be inelastic if
Buyers respond substantially to a change in the price of goods.
Demand shifts only slightly when the price of a good changes.
The quantity demanded changes only slightly when the price of a good
The price of the
The simplest way for a monopoly to arise is for a single firm to
Decrease its price below its competitors prices.
Decrease production to increase demand for its product.
Make pricing decisions jointly with other firms.
Own a key resource.
Under perfect co
The world price of a simple electronic calculator is $5.00. Before Singapore allowed
trade in calculators, the price of a calculator there was $4.00. Once Singapore
began allowing trade in calculators with other countries, Singapore began,
In the following market, an excise tax has been levied. Use the graph to answer
The amount of the excise tax is:
The amount of the consumer burden is
40. The amount of the producer burden is
You have been hired as a consultant to help Comerica Park determine whether they
should raise their ticket prices. At the current price, the elasticity of demand is 0.8.
your conclude that
Demand is elastic. The ticket price should be raised in order to i
1. The price of popcorn goes up. What happens in the popcorn market?
a. Demand decreases; demand curve shifts to the left.
b. Quantity demanded decreases.
c. Supply increases.
d. Demand increases; demand curve shifts to the right.
2. Scientists announce t