If, at the world price, domestic producers are producing and selling 100 units of a good, then at the world price plus tariff it follows that
A) they will be producing and selling more than 100 units of the good.
B) they will be producing and selling fewer than 100 units of the good.
C) producers' surplus will be less than what it is when domestic producers produce and sell 100 units.
D) consumers' surplus will be greater than what it is when domestic producers produce and sell 100 units.
E) c and d
A
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An individual firm desiring to obey the letter of the law while avoiding the effects of regulation may use
a. predatory pricing. b. tit-for-tat strategies. c. creative response. d. collusion.
In an economy where one person receives all the income, the Lorenz curve is
a. the two sides of the right angle triangle b. the diagonal c. a U-shaped curve that lies below the diagonal d. a U-shaped curve that lies above the diagonal e. a downward sloping line from 100 percent of income (on the vertical axis) to 100 percent of population (on the horizontal axis)
Google’s 88 percent market share of web search services makes it a monopolist.
Answer the following statement true (T) or false (F)
An example of a public policy response to a monopoly is:
A. encouraging mergers. B. public admonishment. C. antitrust laws. D. All of these are examples.