Which of the following is true about a lump-sum tariff?

A. Domestic firms' average cost curves are shifted up by the amount of the lump-sum tariff.
B. Foreign firms' marginal cost curves are shifted up by the amount of the lump-sum tariff.
C. Domestic firms' marginal cost curves are shifted up by the amount of the lump-sum tariff.
D. Foreign firms' average cost curves are shifted up by the amount of the lump-sum tariff.


Answer: D

Economics

You might also like to view...

Schleppsi, a soft drink maker, is a monopsonist in the county where it manufactures all of the Diet Schleppsi it produces. Suppose the current daily labor cost to the firm is $35,000 with 99 workers and the total wage cost with 100 workers would be $36,000 . What will the market wage be if Schleppsi hires the 100th worker?

a. $35. b. $36. c. $100. d. $350. e. $360.

Economics

Ethan purchases a new house for $170,000 . Ethan's purchase of the house contributes $170,000 to which magnitude in the identity Y = C + I + G?

a. C b. I c. G d. None of the above are correct.

Economics

Which of the following would shift the production function upward?

A. an increase in the price of oil B. an improvement in technology C. a decrease in the supply of labor D. a decline in the birth rate

Economics

One major role that the government plays in the market economy of the U.S. is:

One major role that the government plays in the market economy of the U.S. is: A. Setting production targets for major industries B. Requiring minimum levels of employment in major industries C. Allocating resources in various market activities D. Setting laws governing economic activity

Economics