A tariff is imposed on a good. This will ________ the domestic producer surplus, ________ the domestic consumer surplus, and ________ total surplus in the home country
A) increase; decrease; decrease
B) increase; decrease; increase
C) increase; remain unchanged; increase
D) increase; increase; increase
A
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Two firms are introducing an improved version of their toothpastes. They must decide whether or not to advertise their products. The table above gives the payoff matrix in terms of the economic profits they expect in each case
The payoffs are in terms of millions of dollars. a. What is the Nash equilibrium for the game? b. If they could cooperate, what strategy would they prefer? What would be the payoff?
Given the information in Scenario 14.1, how much labor will be hired to maximize profit?
A) 1/16 B) 1/2 C) 1 D) 4
The relatively low rate of inflation coupled with a low unemployment rate that occurred in the 1990s represented a “normal” economic situation.
Answer the following statement true (T) or false (F)
"Assuming the long-run average cost curve is U-shaped, a firm will always seek to operate at the lowest point on the long-run average cost curve." True or false?
Indicate whether the statement is true or false