Refer to the information provided in Figure 14.1 below to answer the question(s) that follow.
Figure 14.1Refer to Figure 14.1. Four firms that produce chewing gum form a cartel. The cartel faces the market demand curve given by D. At the profit-maximizing output, the profit on each pack of gum is
A. $0.04.
B. $0.09.
C. $0.15.
D. $0.25.
Answer: B
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Refer to Figure 9.8. If free trade in sugar is replaced by a $50 tariff on sugar, the effect on domestic producer surplus will be to
A) lower it by $50. B) lower it by $12,500. C) leave it unchanged. D) raise it by $50. E) raise it by $12,500.
What famous economist said, "By pursuing his own interest he (an individual) frequently promotes that of the society more effectually than when he really intends to promote it?"
a. Alfred Marshall. b. Adam Smith. c. Karl Marx. d. Robert L. Heilbroner.
What is the difference between the deficit and the debt?
What does price stability mean?
a. Constant inflation over a given period of time. b. No price changes for any good or service during a given period of time. c. Low, non-volatile rates of inflation. d. Low, volatile rates of inflation. e. None of the above.