The Lerner index in the paper industry is 0.58. Based on this information, a firm charging $3.25 per ream of paper should have a marginal cost of:
A. $1.885.
B. $1.365.
C. $0.
D. $3.25.
Answer: B
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The figure above shows Sam's budget line. Which of the following equals the slope of Sam's budget line?
A) Y/Pc B) Y/Pg C) (Pc/Pg) D) (Pg/Pc)
In a labor market with one employer, the MFC is:
a. above the labor supply curve. b. above the labor demand curve. c. what determines the wage. d. downward sloping. e. perfectly horizontal.
Which of the following is an incorrect observation? a. Import tariffs benefit domestic producers and the government, but harms domestic consumers
b. Gains from trade in terms of world output are reduced by export subsidies. c. The overall domestic employment effects of a tariff imposition are likely to be positive. d. If the imposition of a tariff leads to retaliatory tariffs by other countries, domestic employment outside the industry gaining the tariff protection would likely suffer.
Sarah is able to take out a loan for $5000 for one year at an annual interest rate of 10 percent. After calculating her return to be $450, Sarah will:
A. make $50 on net, and should take out the loan. B. lose $50 on net, and should not take out the loan. C. lose $450 on net, and should not take out the loan. D. make $450 on net, and should take out the loan.