Were the results of the U.S. tariff increase on imported small Japanese truck imports consistent with the predictions of the model of a tariff applied to a good exported by a foreign monopoly?
a. No; the imports of trucks declined from 1980 to 2000.
b. Yes; the rise in market price was less than the tariff imposed, implying that Japanese producers lowered their prices to maintain market share.
c. Yes; but trucks and SUVs became indistinguishable, and a number of conclusions can be drawn.
d. No clear conclusions can be drawn.
Answer: b. Yes; the rise in market price was less than the tariff imposed, implying that Japanese producers lowered their prices to maintain market share.
You might also like to view...
The FDIC must take steps to close down banks whose equity capital is less than ________ of assets
A) 4% B) 3% C) 2% D) 1%
Firms in perfectly competitive markets typically have:
A. one profit-maximizing level of output. B. several profit-maximizing levels of output to choose from. C. two profit-maximizing levels of output to choose from. D. no chance of maximizing profits, since they have no control over market price.
A firm's marginal resource cost curve is
a. horizontal only if the firm is a price taker in the product market b. horizontal only if the firm is a price taker in the resource market c. vertical only if the firm is a price taker in the product market d. vertical only if the firm is a price taker in the resource market e. horizontal only if the firm is a price taker in both the product and resource markets
As wages for manufacturing workers rise, wages for service workers will stay the same.
Answer the following statement true (T) or false (F)