If nations such as Germany, Japan, and the United States prohibited international trade in automobiles, a likely effect would be that
a. the price effect would become a more significant consideration for each firm that makes automobiles.
b. the excess of price over marginal cost would become less pronounced in the automobile market.
c. all countries would become better off.
d. automobile producers in the U.S. would collude to produce a large number of cars.
a
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If not recycled, an input used in production ultimately winds up as a waste product.
Answer the following statement true (T) or false (F)
Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) Best Treats Introduce and Healthy Snacks Introduce is a Nash equilibrium.
B) Best Treats Do Not Introduce and Healthy Snacks Do Not Introduce is a Nash equilibrium.
C) Best Treats Do Not Introduce and Healthy Snacks Introduce is a Nash equilibrium.
D) There are no Nash equilibria in this game.
Refer to Scenario 10.4. Suppose that the municipal stadium authority imposes a tax of $10 per ticket on the concert promoters. Given the information above, the profit maximizing ticket price would
A) increase by $10. B) increase by $5. C) not change. D) decrease by $5. E) decrease by $10.
Which of the following statements is true?
A. U.S. residents pay a higher percent of their income in taxes than the people in the provinces of Canada. B. The top marginal tax rate today is about half of the top marginal tax rate in 1960. C. Today the overall tax burden is about the same as what it was in 1929. D. Education in the U.S. is paid for exclusively by local taxes.