Refer to the diagram. If actual production and consumption occur at Q 1 :
A. efficiency is achieved.
B. consumer surplus is maximized.
C. an efficiency loss (or deadweight loss) of b + d occurs.
D. an efficiency loss (or deadweight loss) of e + d occurs.
C. an efficiency loss (or deadweight loss) of b + d occurs.
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Explain the difference between absolute advantage and comparative advantage
What will be an ideal response?
A tariff on a good increases the domestic price of the good, increases domestic production of the good, reduces the amount of the good sold, and decreases imports of the good
a. True b. False Indicate whether the statement is true or false
The Bumpy Ride Suspension company makes springs for bicycle seats. Currently the springs sell for $5 each. Being profit maximizers, the company makes just enough springs so that the marginal cost of the last spring produced is $5 . Their average total
cost at that output is $3.50 . If they currently produce 1,000 springs and the market price falls by $1, approximately how much profit will be lost? a. all of the profit will be lost b. profit will fall by $1 per spring c. there will be no loss of profit d. more than $1,000 but less than $1,500 e. less than $1,000
A Herfindahl-Hirschman Index value of 1,950 indicates that the industry is not competitive.
a. true b. false