Refer to the figure above. What is the producer surplus when Lithasia opens to free trade?
A) $2
B) $5
C) $20
D) $21
B
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In Zealand, banks' desired reserve ratio is 20 percent and the currency drain also equals 20 percent. The money multiplier equals ________
A) 2.18 B) 3.33 C) 5.0 D) 3.0
Firm X is producing 1000 units, selling them at $15 each. Variable costs are $3 per unit and the firm is making an accounting profit of $3000 . What is the firm's fixed costs?
a. $9,000 b. $10,000 c. $11,000 d. $12,000
Two firms producing identical products may merge due to the existence of:
A. economies of scale. B. cost complementarities. C. economies of scope. D. All of the statements are correct.
Alex was willing to pay $50 for the new World Cup soccer ball. When he received it as a gift, he was willing to sell it, but for no less than $80. According to behavioral economists:
A. Alex's behavior is consistent with the endowment effect. B. Alex's behavior is irrational because of inconsistent anchoring. C. Alex should sell the ball if he's offered any amount over $50. D. Alex's behavior is irrational because his frame has changed.