On the graph for a monopolist’s losses, the total loss is shown by ______.
a. area DAQM0
b. curve ATC
c. curve AVC
d. area CBAD
d. area CBAD
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Explain how automatic stabilizers work
What will be an ideal response?
In an effort to reduce the surplus of dairy products, agricultural legislation paid dairy farmers to slaughter their herds and sell them to packinghouses (meat producers) in 1996-1997 . How did this influence the market for beef?
a. demand increased, leading to higher beef prices b. demand decreased, leading to lower beef prices c. supply increased, leading to lower beef prices d. supply decreased, leading to higher beef prices
A "war on drugs" is waged, and, as a result, a larger quantity of drugs flowing into the United States is seized and more drug traffickers are arrested. If demand for drugs is inelastic, one would expect the total expenditure on drugs to: a. decrease
b. increase. c. stay constant. d. There is not enough information available to make a determination.
If firms make agreements that reduce the amount of competition in a market,
a. the market price usually falls b. they would face penalties under antitrust legislation c. mergers will result d. there must be diseconomies of scale in the industry e. they would face penalties under contract law