Refer to the information provided in Table 13.3 below to answer the question(s) that follow. Table 13.3Price ($)Quantity4.001003.502003.003002.504002.005001.506001.00700Refer to Table 13.3. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the level of output that would maximize its profits?
A. 200
B. 400
C. 500
D. 600
Answer: B
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Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
Sd + Q is the product supply curve after an import quota is imposed. A quota of y?w will result in an increase of domestic producer surplus equal to area(s)
A. E + F + K. B. E. C. E + F + G + H + J. D. K.
Which of the following is important in determining the extent of competition in an industry?
A) the level of market demand for the industry's product B) whether or not the industry product is differentiated or standardized C) the minimum efficient scale of production relative to market demand D) the minimum level of short-run average total costs of production
If minimum wage legislation does cause unemployment, then:
A. those who are lucky enough to land jobs benefit. B. those who become unemployed as a result lose. C. firms will not bear the entire burden of the higher cost of employment. D. All of these are true.
You own 10000 bu of wheat in Chicago. You would make the greatest loss if which of the following occurred very quickly?
A. The wheat was hedged and cash price rose $0.50/bu while your basis weakened by $0.15/bu B. The wheat was unhedged and cash price fell by $0.10/bu C. The wheat was hedged and cash price fell $1.00/bu and your basis strengthened by $0.15/bu D. There were no gains in any of the above