The optimal amount of social regulation occurs where the marginal benefit of such regulation:
A. equals the marginal cost.
B. exceeds the marginal cost by the greatest amount.
C. is zero.
D. is at its maximum.
Answer: A
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Assume the supply function of ice cream is written as: Qs = 100 + 20P - 10Pm, where Qs is the quantity supplied, P is price of ice cream, and Pm is the price of milk ($/gallon)
If milk price increases by $2/gallon due to the policy change, how will the Qs change? A) decreases by 20 B) increases by 20 C) decreases by 10 D) increases by 10
The indifference curves for nickels and dimes are straight lines
a. True b. False Indicate whether the statement is true or false
Which of the following statements is false?
A) As a result of a quota, consumers' surplus falls. B) As a result of a tariff, producers' surplus rises. C) As a result of a tariff, consumers' surplus falls. D) As a result of a quota, producers' surplus rises. E) none of the above
Refer to the data. Marginal product becomes negative with the hiring of the __________ unit of labor
A. third
B. fourth
C. sixth
D. seventh