Suppose that Australia imposes a tariff on imported beef. If the increase in producer surplus is $100 million, the increase in tariff revenue is $200 million, and the reduction in consumer surplus is $500 million, the deadweight loss of the tariff is $300 million
a. True
b. False
Indicate whether the statement is true or false
False
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"If firms in an oligopoly operate as a monopoly, the industry produces the most output and if they operate as perfect competitors, the industry produces the least output." Is the previous statement correct or incorrect? Why?
What will be an ideal response?
If a profit-maximizing, perfectly competitive firm is making only a normal profit in the short run, then the firm is in:
a. disequilibrium. b. equilibrium where MR exceeds minimum ATC. c. equilibrium where MR equals minimum AVC. d. equilibrium where P = AFC. e. equilibrium where P = ATC
The trade-off between the production of one good and the production of another good can change over time because of technological advances
a. True b. False Indicate whether the statement is true or false
Good Y is a complement to good X if an increase in the price of good Y leads to
A. an increase in the demand for good X. B. a decrease in the supply for good X. C. a decrease in the demand for good X. D. an increase in the supply for good X.