Cold weather in the Midwestern and eastern United States increases the popularity of vacations in sunny California. At the same time, the hotel employees' union in California negotiates a significant pay increase for its members. The likely impact on the hotel market in California is:
a. an increase in the price of hotel rooms and an increase in hotel room rentals
b. an increase in the price of hotel rooms and a decrease in hotel room rentals.
c. an uncertain effect on the price of hotel rooms, but an increase in the quantity of hotel rooms rented.
d. an increase in the price of hotel rooms, but an uncertain effect on the quantity of hotel rooms rented.
d
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The above table shows the market shares for all the landscaping services in a suburban area. The Herfindahl-Hirschman Index (HHI) equals
A) 65. B) 900. C) 1400. D) 1600.
During recent Global Economic Crises, consumers' wealth in the U.S. declined as a result of all of the following EXCEPT
A) the stock market crash. B) pricking of the housing bubble. C) increased household borrowing. D) aggressive fiscal policy.
In principle, can a monopolist hold its monopoly power in the long run? Explain
What will be an ideal response?
If the government raised land taxes $20/acre, this would increase the farmer's average fixed cost. How would that affect (a profit maximizing) farmers' decision about the quantity of corn to produce in the short run?
a. It would have little change because in the short run the farmer will consider only the Average Variable Cost (AVC) in making a decision on quantity supplied b. It will decrease the quantity the farmer is willing to supply because the Average Variable Cost (AVC) will increase for the farmer c. It will decrease the quantity the farmer is willing to supply because the farmer considers all costs in the short run in making a decision about quantity supplied d. None of the above