Suppose that the world price of kiwi fruit ($10 per box) is below the domestic price ($12 per box). A tariff of $1 per box would:
a. cause foreign producers to be better off, because the price they charge is now higher by $1 per box.
b. cause domestic producers to be worse off by $5 per box.
c. make domestic consumers worse off as they would be paying $1 more than the domestic price.
d. make domestic consumers pay $1 more than the free trade price, but still $1 less than the domestic price.
e. cause domestic producers to be worse off by $10 per box.
d
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The seller of an option has the ________ to buy or sell the underlying asset while the purchaser of an option has the ________ to buy or sell the asset
A) obligation; right B) right; obligation C) obligation; obligation D) right; right
An example of exclusive dealing occurs when
a. one individual serves on more than one board of directors b. one individual serves on only one board of directors c. a producer sells spark plugs to a car manufacturer with the understanding that the manufacturer will buy spark plugs only from that producer d. the seller offers a good for sale to an individual (or a limited group) on substantially better terms than is available to the general public e. a producer of spark plugs requires that customers also purchase rotors when they buy spark plugs
If duopolists colluded but then stopped colluding,
a. price and quantity would rise. b. price would rise and quantity would fall. c. price would fall and quantity would rise d. price and quantity would fall.
The price of gasoline is $3.30 per gallon. If one gallon of gasoline provides the same marginal utility as a gallon of milk, how much will the gallon of milk cost at consumer equilibrium?
a. $1.00 b. $1.65 c. $3.30 d. $6.60