Which of the following is likely to shift the demand curve for coffee workers to the left, assuming all else equal?
A) An increase in the wage rate B) A decrease in the wage rate
C) A decrease in the price of coffee D) An increase in the price of coffee
C
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If firms are price setters, a small decline in the demand for their outputs will cause them to
A) reduce price and reduce the level of output produced. B) reduce output in the short run, but reduce price in the long run. C) reduce price in the short run, but reduce output only in the long run. D) increase price in the short run to offset the effect on profits of a decline in output.
Juan Pablo and Zak are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or not at all. If they both advertise on TV, each will earn a profit of $8,000 . If they both advertise on radio, each will earn a profit of $14,000 . If neither advertises at all, each will earn a profit of $20,000 . If one advertises on TV and other advertises on radio,
then the one advertising on TV will earn $12,000 and the other will earn $10,000 . If one advertises on TV and the other does not advertise, then the one advertising on TV will earn $22,000 and the other will earn $4,000 . If one advertises on radio and the other does not advertise, then the one advertising on radio will earn $24,000 and the other will earn $8,000 . If both follow their dominant strategy, then Juan Pablo will a. advertise on TV and earn $8,000. b. advertise on radio and earn $14,000. c. advertise on TV and earn $22,000. d. not advertise and earn $20,000.
Governments that impose sin taxes on goods they believe are harmful to the consumer may not take into account deadweight loss because:
A. producer surplus increases when sin taxes are instituted. B. individuals are self-interest-seeking rational beings. C. the consumer surplus that is lost may not reflect the consumer's welfare. D. the demand curve reflects individuals' desire but not their ability to purchase.
Refer to the data. Assuming that the firm is motivated by self-interest and that the 20 units that can be produced with each technique can be sold for $2 per unit, the firm will:
Answer the question using the following data, which show all available techniques for producing 20 units of a particular commodity:
A. realize an economic profit of $10.
B. realize an economic profit of $4.
C. not earn any economic profit.
D. shut down rather than incur a loss by producing.