Refer to the figure above. If A forms a customs union with C, A's welfare will change by
A) $a + $e
B) $a + $b + $c + $d + $e
C) $a + $e - $b - $c - $d
D) $a + $e - $h - $i - $j
D
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"A monopolist refers to any firm that is large in size." Do you agree or disagree? Why?
What will be an ideal response?
Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of 15 percent. If a borrower expects that the rate of inflation next year will be 10 percent and the actual rate of inflation next year is 10 percent,
a. the lender benefits from inflation, while the borrower loses from inflation. b. the borrower benefits from inflation, while the lender loses from inflation. c. neither the borrower nor the lender benefits from inflation. d. both the borrower and the lender lose from inflation.
If $1.00 U.S. was equivalent to $1.40 Canadian in 2006 and $1.00 Canadian in 2010, it implies that the:
a. U.S. dollar appreciated against the Canadian dollar in 2010. b. Canadian dollar weakened against the U.S. dollar in 2010. c. U.S. dollar strengthened against the Canadian dollar in 2010. d. Canadian dollar appreciated against the U.S. dollar in 2010.
Given the same marginal revenue product (MRP) and supply curves, the equilibrium quantity of labor employed in a monopsonistic labor market will be:
A. equal to that in a competitive labor market. B. less than that in a competitive labor market. C. greater than that in a competitive labor market. D. there is insufficient information for a conclusion.