Ralph's Ski Shop is a local monopoly in a regional market. This type of situation can result from all of the following except:
a. small population relative to output needed for scale economies
b. patent protection
c. control of local zoning or limited operation permits
d. long distance to alternative ski shops
e. multiple products
E
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Which of the following is an example of a monopolistically competitive firm?
A. Farmer Smith's corn farm B. Tino's Italian eatery, a local restaurant C. TCI Cablevision, a supplier of cable television services D. Northwest Electricity, a supplier of electricity in the Northwest U.S.
Refer to Scenario 16.1 below to answer the question(s) that follow. SCENARIO 16.1: The marginal benefit for a particular food is described by MB = 30 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 2q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 4q.Refer to Scenario 16.1. The competitive output level is ________ and the competitive price is ________.
A. 10 units of food; $20 B. 4.29 units of food; $25.71 C. 6 units of food; $24 D. 0 units of food; $0
Which of the following has also been called the command and control approach?
A. Direct controls B. Voluntary compliance C. Tradable emissions permits D. Taxes on pollution
Suppose a basket of internationally traded goods that sells for $10,000 in the United States sells for €8,000 in the euro zone. According to purchasing power parity theory, the equilibrium exchange rate should be
a. $2.50 per euro b. $1.50 per euro c. $1.25 per euro d. $1.00 per euro e. $.50 per euro