If bagels and croissants are substitute goods, which of the following is likely to occur if the price of bagels has decreased?
A) The demand curve for bagels shifts to the right.
B) A leftward movement along the bagel demand curve.
C) The demand curve for croissants shifts to the right.
D) The demand curve for croissants shifts to the left.
D
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Some economists agree that monopolies are inevitable and bad, but they also believe that price regulation is the wrong way to combat the high prices of a monopolist. They prefer
a. deregulating prices b. nationalization c. laissez-faire d. encouraging concentration e. splitting up the monopoly
Large gains from trade are most likely when countries are very different.
Answer the following statement true (T) or false (F)
A country's net welfare will increase when it imposes a tariff on a foreign monopolist if its:
a. terms-of-trade gain is greater than its increase in tariff revenues. b. terms-of-trade gain is less than its increase in tariff revenues. c. terms-of-trade gain is greater than its lost consumer surplus. d. increase in tariff revenues is greater than its lost consumer surplus.
A monopsonist is a firm which
A. is a "sole-buyer" in an input market. B. is a price taker in the labor market. C. faces a horizontal demand curve for labor. D. faces a downward sloping demand curve for its output.