The total cost of federal regulation includes
A. only the funding of the regulatory agencies.
B. only the cost of compliance by the regulated firms.
C. the funding of government agencies overseeing compliance less the compliance cost for the regulated firms and the opportunity cost of regulation for the firms.
D. the funding of government agencies overseeing compliance, the compliance cost for the regulated firms, and the opportunity cost of regulation for the firms.
Answer: D
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For most firms, the costs of energy and raw materials will be total fixed costs
a. True b. False Indicate whether the statement is true or false
As shown in the graph, when a government imposes a quota, the outcome differs from that of a tariff being imposed in that area:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.
A. F and H are deadweight loss instead of transferred surplus.
B. E represents tax revenues instead of transferred surplus.
C. FGH is deadweight loss instead of tax revenues.
D. G represents quota rents instead of tax revenues.
Which of the following would be an example of a public good?
a. A candy bar. b. A painting by Monet. c. A taxi cab. d. A sunset. e. The beach.
A merger of a firm and its supplier is called
A. a vertical merger. B. a horizontal merger. C. a conglomerate merger. D. a direct merger.