Suppose the demand for tacos decreases. What will happen to producer surplus in the market for tacos?
a. It increases.
b. It decreases.
c. It remains unchanged.
d. It may increase, decrease, or remain unchanged.
B
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Which of the following would cause the supply of dollars curve in the United States to shift to the right?
a. Japanese imports become less popular. b. The value of the dollar falls. c. The supply of dollars decreases. d. Japanese imports became more popular.
Either a price floor or a price ceiling will result in a smaller quantity exchanged than if the price was at its equilibrium level
a. True b. False Indicate whether the statement is true or false
Two firms, Industrio and Capitalista, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below. Both firms currently use process A, and each emits 4 tons of smoke per day. The government is considering two plans to reduce pollution: requiring both firms to reduce pollution by 25 percent or auctioning pollution permits. Each permit would entitle the owner to emit one ton of smoke per day. Without a permit, no smoke can be emitted.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Industrio ($/day)$350$400$500$700$1,000Cost to Capitalista
($/day)$225$250$290$400$600 Suppose the government decides to sell 6 permits allowing a total of 6 tons of pollution. The government starts the bidding with an opening price of $30. What happens next? A. A total of five permits will be demanded, forcing the government to lower the price. B. Industrio will purchase all available permits at $30. C. A total of seven permits will be demanded, forcing the government to raise the price. D. Industrio will demand 3 permits and Capitalista will demand 3 permits.
The monopolist's input demand curve is the
A. marginal physical product curve. B. marginal factor cost. C. marginal revenue curve. D. marginal revenue product curve.