A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade):$20 per bottleDomestic production (free trade):500,000 bottlesDomestic production (after tariff):600,000 bottlesDomestic consumption (free trade):750,000 bottlesDomestic consumption (after tariff):650,000 bottles Before the tariff is imposed, the country imports ________ bottles of wine, but following the imposition of the tariff, the country will import ________ bottles of wine.
A. 750,000; 650,000
B. 150,000; 50,000
C. 100,000; 100,000
D. 250,000; 50,000
Answer: D
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Profit maximization is
a. the only motive of any firm's management. b. a behavioral assumption to simplify analysis. c. the same as satisficing. d. a literal description of a firm's behavior.
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Answer the following statement true (T) or false (F)
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A. 3. B. 0. C. 1/3. D. 400.