Which of the following decrease the deadweight loss from a rent ceiling set below the equilibrium rent? i. lowering the ceiling ii. dedicating more resources to enforcement of the ceiling iii. raising the ceiling
A) i only
B) ii only
C) iii only
D) i and ii
E) ii and iii
C
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The Lerner Index is
A) the ratio of the difference between price and marginal cost to price. B) equal to (Price - MC)/Price C) a measure of market power. D) All of the above.
Health Bars markets their snack bars as gluten and nut allergy free. If consumers with gluten or nut allergies become sick due to consuming gluten or nuts in Health Bars snacks, the managers of Health Bars face heavy legal fees. As a result, managers of Health Bars are more likely to produce all of their inputs rather than buy them due to issues with ________.
A) transportation costs B) economies of scale C) quality control D) trade secrets
The famous historical example of the commitment strategy used by Cortes against the Aztecs is sometimes referred to as:
A. "burning your boats." B. "burning your bridges." C. "friendly fire." D. "putting all your eggs in one basket."
According the graph shown, the profit-maximizing decision of the monopolist would be:
This graph shows the cost and revenue curves faced by a monopoly.
A. Q1, P1.
B. Q1, P3.
C. Q2, P2.
D. Q1, P2.