The above figure shows supply and demand curves for milk. In an effort to help farmers, the government passes a law that establishes a $3 per gallon price support. To maintain the price support, government expenditures must equal
A) k + i.
B) f + g + h + i + j.
C) f + g + h + i + j + k.
D) f + g + h + i + j + k + e.
C
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Differentiated" is another word for:
a. identical. b. homogeneous. c. heterogeneous. d. None of these has the same meaning.
You shop at the local drugstore because it is convenient. This situation is best described as:
a. a market with horizontal demand. b. monopolistic competition with differentiation by location. c. differentiation by a cartel. d. differentiation by style or type.
The NFL Ticket Exchange is an attempt by the NFL
A. to extend its monopoly in the primary ticket market to the secondary market. B. to capture profits made in the secondary market. C. to appear to charge lower ticket prices while effectively charging higher prices. D. all of these.
Which of the following is not a market failure?
A. A lack of competition in some markets. B. Prices determined in competitive markets, which consumers, as individuals, have no control over. C. The presence of externalities in some markets. D. A lack of public goods desired by a majority of citizens.