Refer to Figure 6.6, which shows a market for taxi medallions. If the number of medallions is reduced from Q2 to Q1, the producer surplus is represented by:
A. area ABF.
B. area ACFG.
C. area DEH.
D. area BEFH.
Answer: D
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Dalton, Georgia, a town with a population less than 35,000, has developed into a leading producer of carpets, despite its small size
Some government officials argue that the success achieved by firms in Dalton in developing a comparative advantage in carpet making because of external economies can be used to justify trade barriers as a means to protect an "infant industry." After an infant industry gains experience it can compete in international markets and the trade barriers can be removed. What objections do economists make to this argument in favor of trade barriers?
Federal taxes make up about ______ percent of total taxes
a. 40 b. 50 c. 60 d. 70
At a given rate of output, marginal cost equals the slope of the
a. long-run average cost curve b. short-run average total cost curve c. planning curve d. total cost curve e. average variable cost curve
Refer to the table. The government would likely challenge a merger between:
Answer the question on the basis of the following table showing market shares of firms in hypothetical industries. Assume these are distinct industries with no buyer-seller relationships or competition among them.
A. Firm 1 in Alpha and Firm 6 in Delta.
B. Firms 3 and 4 in Beta.
C. Firms 1 and 2 in Cappa.
D. Firm 4 in Alpha and Firm 3 in Cappa.