If a horizontal merger lowers the cost of production and increases the total surplus in the market, which of the following is also likely to have occurred?
A) The producer surplus decreased.
B) The consumer surplus increased.
C) The consumer surplus decreased.
D) The producer surplus did not change.
C) The consumer surplus decreased.
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Deregulation of the airline, trucking, telephone, and electric utility industries are examples of ________ policy.
A. fiscal B. monetary C. aggregation D. structural
In a competitive market, a. demand will always reflect all spillover costs
b. demand will always reflect all spillover benefits. c. supply will always reflect all spillover costs. d. none of the above are true.
Situation 33-1 Suppose that the equation that represents the expected benefits of burglary for a given prospective criminal is as follows: EB = Ps x Loot The criminal's cost equation is as follows: EC = [Pp x (I + F)] + AC Where: EB is the expected benefits of burglary Ps is the probability of successfully burglarizing a house Loot is the dollar take from the burglary EC is the expected costs of
burglary Pp is the probability of imprisonment I is the income the criminal gives up if caught and imprisoned F is the dollar value the criminal puts on freedom AC is the anguish cost of committing a burglary Refer to Situation 33-1. If the prospective criminal sets the following values: Ps = 50 percent Loot = $30,000 Pp = 10 percent I = $10,000 F = $25,000 AC = $5,000 The prospective criminal's expected benefit from committing the burglary is ______________ and his expected cost of committing the burglary is _______________. Economic theory tells us that under these circumstances, the prospective criminal ______________ commit the burglary. A) $15,000; $8,500; will B) $15,000; $8,500; will not C) $15,000; $40,000; will not D) $17,500; $12,000; will
From 2015 to 2016, the overall price level rose from 200 to 220. Over this same period, tuition rates at the local community college rose from $100 to $115 per credit hour. What can be concluded from the rise in tuition relative to overall inflation?
a) Tuition rates increased at the same rate as inflation. b) Tuition rates increased at a slower rate than inflation. c) Tuition rates increased at a faster rate than inflation. d) Tuition rates and inflation cannot be compared with the numbers given.