If a market switches from being a perfectly competitive market to being a monopoly market, the decrease in consumer surplus is more than offset by an increase in producer profits.
Answer the following statement true (T) or false (F)
False
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The following table provides nominal exchange rates for the U.S. dollar.CountryForeign currency/dollarDollar/foreign currencyPoland(Zloty)4.367.229South Africa(rand)6.944.144Based on these data, the nominal exchange rate equals approximately ________ zloty per South African rand or, equivalently, ________ rand per Polish zloty.
A. 0.021; 47.640 B. 0.629; 1.590 C. 47.640; 0.021 D. 1.590; 0.629
Which of the following is most consistent with economizing behavior?
a. If you get the same satisfaction from a hamburger and a fish sandwich, you should purchase the one that costs the most. b. Even if you know how to paint, hiring someone to do the job is consistent with economizing behavior, if your opportunity cost is high enough. c. If the government provides a good free to citizens, the opportunity cost of the good is zero. d. If you get the same satisfaction from going to the opera and going to an art museum, it makes no difference which you choose.
If a market is contestable, how does the equilibrium differ from that of a monopoly?
What will be an ideal response?
A tax on polluting firms
a. would shift the LRAC curve upward. b. would shift the LRAC curve downward. c. would have the same impact on the firm as a subsidy. d. tends to have the perverse effect of increasing pollution.