Refer to Figure 16-6. If Sensei acts as a monopolist and charges the profit-maximizing price, what is the consumer surplus received by his customers?
A) the area A + C + H B) the area A + B + C + D
C) the area A + B D) the area A + B + C + D + E
C
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An increase in immigration would
a. have no effect on the labor supply curve and real wages. b. shift the labor supply curve to the left and increase real wages. c. shift both the labor demand curve and the labor supply curve to the left. d. shift the labor supply curve to the right and decrease real wages.
A recent news report lamented the plight of corn farmers in Wisconsin due to a severe drought. Which of the following best describes the effect on corn farmers in Minnesota, where sufficient rainfall occurred?
a. Their revenue increases because price increases and demand is elastic. b. Their revenue increases because price increases and demand is inelastic. c. Their revenue decreases because price decreases and demand is inelastic. d. Their revenue decreases because price increases and demand is elastic.
Which of the following is an example of an investment in physical capital?
A. A firm purchases new equipment for a manufacturing process. B. A firm pays for workers to take college classes. C. A firm trains workers to operate new machinery. D. A chemical firm employs chemists to develop new chemicals.
If the market price of a basketball is $35 and the full cost of producing it is $20, then a basketball producing firm gets producer surplus of
A. 1 basketball. B. $35. C. $20. D. $15.