Oligopolists may charge a price lower than the profit maximizing price to discourage new firms from entering a market
a. True
b. False
Indicate whether the statement is true or false
True
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A tax can always be found and implemented that will correct a cause of an external effect
Indicate whether the statement is true or false
Refer to Figure 5-9. An efficient way to get the firm to produce the socially optimal output level is
A) to grant a subsidy to enable the industry to internalize the external costs of production. B) to assign property rights to the firms in the industry. C) to impose a tax to make the industry bear the external costs it creates. D) for government to set a quota on the quantity of toilet paper that the toilet paper industry can produce.
Nominal values are
A. based on inflation-adjustments. B. based on Gross Domestic Product (GDP) per capita. C. measured in terms of actual market prices at which the goods are sold. D. measured in terms of total purchasing power.
Assume that all workers are equally productive, but the wage rate for men is $12 compared to $9 for women. An employer who employs only male workers must have a discrimination coefficient of:
A. more than $3. B. at most 0.3. C. less than $3. D. 1.33 or less.