In the figure above, the deadweight loss from the tariff is ________
A) $32 million
B) $80 million
C) $16 million
D) zero
A
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Answer the following statement(s) true (T) or false (F)
1. When a monopoly supplier acquires a monopoly manufacturer, the vertical merger intensifies the supplier's use of monopoly power over the manufacturer. 2. A buy-out is more likely to delay a rival's reemergence than is predatory pricing. 3. Economic analysis suggests that resale price maintenance is primarily used by manufacturers to keep prices artificially high. 4. A firm has the incentive to cheat on a cartel agreement only when it fears that other cartel members will also cheat. 5. The Prisoners' Dilemma game is another situation where the Invisible Hand Theorem is true.
"Moving along the AS curve, the real wage rate is constant while moving along the potential GDP line, the real wage rate changes." Explain whether the previous statement is correct or incorrect
What will be an ideal response?
In a large open economy ________
A) the effect of shifts in saving and investment on the trade balance are in the same direction as in a closed economy B) the effect of shifts in saving and investment on net capital flows are in the same direction as in a closed economy C) the effect of shifts in saving and investment on the domestic real interest rate and the actual levels of saving and investment are in the same direction as in a closed economy D) all of the above E) none of the above
A monopoly occurs when
A. There is only one producer of a particular good or service. B. A firm gains some level of market power. C. A firm charges a price greater than the equilibrium price. D. There is an underproduction of a good or service by a firm.