Tradable allowances are like taxes in that they both:
A. maximize surplus.
B. are not efficient.
C. impose a quota on output.
D. None of these statements is true.
Answer: A
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A legal monopoly is defined as a market where
A) only one lawyer operates. B) a legal barrier to entry exists. C) only one firm could earn a profit. D) entry and exit are legal.
According to the graph shown, if the government decides to increase its spending, it is most likely at point:
A. C
B. B
C. D
D. It's impossible to tell without more information.
Refer to the accompanying figure. The opportunity cost of making an additional salad:
A. decreases as the number of pizzas decreases. B. remains constant regardless of how many salads are made. C. decreases as the number of salads increases. D. increases as the number of salads increases.
Which of the following examples is most typical of monopolistic competition?
a. ARD, Inc. competes with six other firms in the paper towel market. b. Tropics, Inc. is the only producer of guava in the international market. c. Glow, Ltd. and SolarMax, Inc, are the two major producers of solar panels. d. TropicFreeze, Inc. remains the sole producer of papaya ice cream.