The vertical distance of the shift in supply from a specific tax of t amount on producers will
A) equal t.
B) be less than t.
C) depend on the elasticity of supply.
D) depend on the incidence of the tax.
A
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A profit maximizing monopoly's price is
A) not consistently related to price that would prevail if the market was perfectly competitive. B) greater than the price that would prevail if the industry was perfectly competitive. C) less than the price that would prevail if the industry was perfectly competitive. D) the same as the price that would prevail if the industry was perfectly competitive.
In the case of Thailand in 1997, the Thai government was running a large:
A) current account surplus, requiring capital inflows from abroad. B) current account deficit, requiring capital inflows from abroad. C) current account surplus, requiring capital outflows. D) current account deficit, requiring capital outflows.
In the Cournot model, if the products are differentiated
A) this reduces the pressure of one firm's decisions on the other. B) this increases the pressure of one firm's decisions on the other. C) there is no difference between this model and one with homogeneous goods. D) marginal costs are necessarily different.
Prices serve the public interest by
a. making resource owners wealthy. b. rationing scarce resources. c. keeping poor people from purchasing more than they can afford. d. forcing the government to participate in the market.