The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point b could be the result of
A) an increase in technology.
B) a decrease in the relative price of a soft drink.
C) an increase in the relative price of a soft drink.
D) an increase in the money price of a soft drink.
A
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Refer to Figure 15-16. If the regulators of the natural monopoly allow the owners of the firm to break even on their investment the firm will produce an output of ________ and charge a price of ________
A) Q3 units; P4 B) Q1 units; P1 C) Q1 units; P4 D) Q5 units; P3
Compared to dollarization, a currency board
A) has a flexible exchange rate. B) has a separate currency. C) conducts independent monetary policy. D) is the same institution.
A problem associated with import substitution as an industrial policy is:
A. it removes the incentive for industries to be efficient. B. industries are often chosen for political, not economic, reasons. C. it often stays in place long after it was expected to lapse. D. All of these are problems associated with import substitution policy.
Refer to the data. The profit-maximizing price for the monopolist will be:
A. $5.00.
B. $2.90.
C. $3.35.
D. $4.50.