The effect of a tariff
A) is negligible since it applies to firms outside the U.S.
B) can lead to economies of scale for firms inside the U.S.
C) can lead to a monopoly advantage for firms inside the U.S. since they become the sole suppliers inside the U.S.
D) will be more beneficial to large firms than to small firms.
C
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A firm that is the only firm in the industry may not behave like a monopolist in order to deter entry of other firms. ?
Answer the following statement true (T) or false (F)
A consumer buys food (F) and shelter (S). If the consumer's income rises and there is no change in the prices of F or S, the marginal rate of transformation of F for S will
A) increase. B) decrease. C) stay the same. D) change, but there is not enough information to know how.
Which of the following would decrease the price of packaged hot dogs?
a. An increase in the price of hot dog buns, a complement to packaged hot dogs. b. A decrease in the price of hamburger meat, a substitute for packaged hot dogs. c. A technological advance that lowers the cost of producing packaged hot dogs. d. All of these.
Suppose that the price of one gallon of milk was $0.25 in 1950, that the CPI in 1950 was 25, and that in 2000 the CPI was 200.What is the price of a 1950 gallon of milk in 2000 dollars?