If the government were to limit the release of air pollution produced by a glue factory to 75 parts per million, the policy would be considered a
a. corrective tax.
b. subsidy.
c. command-and-control policy.
d. market-based policy.
c
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Which of the following statements about price discrimination is correct?
A. Successful price discrimination will provide the firm with more total profits than if it did not discriminate. B. Successful price discrimination will provide the firm with lower total profits than if it did not discriminate. C. Successful price discrimination occurs when there are differences in the costs of producing for different groups of buyers. D. Successful price discrimination will generally result in a lower level of output than would be the case under a single-price pure monopoly.
What are the three forces that cause the aggregate demand curve to slope down? Explain
What will be an ideal response?
In the Cournot model, the output that a firm chooses to produce increases as
A) the total output of other firms increases. B) the number of firms in the market increases. C) the number of firms in the market decreases. D) its marginal cost increases.
The manager of a large luxury hotel chain is currently negotiating a four year contract with a linens supplier. The linens company will supply fresh laundered bedding and towels to the hotel over a four year period; however, the hotel chain can ends its contract with the linens company at the end of the first, second, or third years if the linens company does not supply quality linens. What can
the manager of the hotel chain do to avoid the end-game problem? A) Pay the linens company in full at the beginning of the first year. B) Pay the linens company one half of the contract amount after the first year and the remaining half after the second year. C) Pay the linens company in full after the first year. D) Offer to renew the contract if the linens company provides quality linens all four years.