How does a subsidy influence producer efficiency?
a. It encourages producers to produce above the efficient production level.
b. It encourages producers to produce at peak efficiency levels.
c. It encourages producers to produce below the efficient production level.
d. It encourages producers to produce only after the subsidy funds are used up.
a. It encourages producers to produce above the efficient production level.
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The various ways that vertical relationships can evade regulation include
a. tying the sale of a regulated good to a customer's choice of an unregulated good b. bundling regulated and unregulated goods c. preventing the exclusion of rival unregulated goods d. insuring tax rates are uniform across jurisdictions
At the point where the marginal revenue equals zero for a monopolist facing a straight-line demand curve, total revenue is:
a. greater than 1. b. maximum. c. less than 1. d. equal to zero.
Figure 14-7
In , short-run equilibrium occurs
a.
at point a.
b.
at point b.
c.
at point c, where the actual price level exceeds the expected price level.
d.
at point c, where the actual price level is less than the expected price level.
Figure 10.1 shows a monopolist's demand curve. If the monopolist increases output from two to three units, what is its marginal revenue?
A. $3 B. $5 C. $12 D. $15