To remain in consumer optimum
A. a price decrease requires an increase in consumption.
B. prices must remain static.
C. a price decrease requires a decrease in consumption.
D. a price increase requires an increase in consumption.
Answer: A
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To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. The deadweight loss created by this tax would be greater than shown in the figure above if
A) the demand were more elastic. B) the supply were more elastic. C) neither of the above. D) both A and B above.
Which of the following is true about a monopoly?
a. A monopoly charges a higher price and produces a lower output level than if the market were competitive. b. A monopoly is guaranteed an economic profit. c. A monopoly charges the highest possible price. d. A monopoly will shut down whenever losses are incurred. e. All of these.
Consider an industry consisting of four firms with market shares of 30 percent, 25 percent, 25 percent, and 20 percent. Calculate the Herfindahl Hirschman Index and interpret your result
Assume that the U.S. can produce either 10 million cell phones or 20 million picture frames and that Canada can produce either 2 million cell phones or 6 million picture frames. Based on this information, which of the following is true?
A. Both countries could benefit if the U.S. traded cell phones to Canada for picture frames. B. Both countries could benefit if the U.S. traded picture frames to Canada for cell phones. C. Canada could gain from trade but the U.S. could not. D. The U.S. could gain from trade but Canada could not.