When a per unit tax is imposed on the sale of a product of a monopolist, the resulting price increase will
A) always be less than the tax.
B) always be more than the tax.
C) always be less than if a similar tax were imposed on firms in a competitive market.
D) not always be less than the tax.
D
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A Federal Reserve publication proclaimed that "Trade is a win-win situation for all countries that participate." This statement is
A) false since it ignores the workers who lose their jobs as result of international trade. B) true because all consumers and workers benefit from international trade. C) false since not all countries participate in international trade. D) true because it refers to countries; individuals may be losers as a result of international trade.
When both firms have dominant strategies
A) the outcome is called a dominant strategy solution. B) joint profits are maximized. C) there are multiple Nash equilibria. D) there is a prisoners' dilemma.
Which of the following students would be most likely to drop out of college before completing their degree? Select one:
a. a senior physics major with a solid B average b. a junior secondary education major who has just read about the substantial improvement in the job opportunities available for teachers with a college degree. c. an outstandingbaseball player in his junior year that just received a $500,000 offer from a professional team d. a junior economics major who wants to attend law school
The following table shows four firms, the amount each pollutes, the marginal cost for each firm to clean up pollution, and the total cost to each firm of eliminating all pollution.FirmTotal Discharge (in tons)Marginal Cost of Cleanup(per ton)Total Cost of CleanupA60$5.00$300B70$8.00$560C80$7.50$600D90$4.00$360The total discharge of these four companies is 300 tons. Assume there is no one else who pollutes. If the government establishes an effluent fee of $7.00 per ton, how much would the firms spend on reducing pollution?
A. $2,100 B. $660 C. $1,820 D. $1,710