With free trade, the demand curve facing a small-country monopolist:
a. is horizontal at the world price.
b. shifts upward by the amount of imports demanded.
c. shifts downward by the amount of imports demanded.
d. is horizontal at the firm's MC.
Ans: a. is horizontal at the world price.
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A firm that is technologically efficient
A) must be economically efficient, but a firm that is economically efficient is not always technologically efficient. B) must be economically efficient, and a firm that is economically efficient must always be technologically efficient. C) is not always economically efficient, and a firm that is economically efficient is not always technologically efficient. D) is not always economically efficient, but a firm that is economically efficient must always be technologically efficient.
A form of implicit collusion in which one firm consistently follows the actions of another firm is:
A) predatory pricing. B) a Webb-Pomerene association. C) parallel conduct. D) only illegal in Europe.
Claire is on her way to her job at a call center where she was planning on spending three hours. She can drop in and work any hour she wants to and earn $12 per hour. Her friend calls and invites her to spend the next three hours bungee jumping. Claire decides to go with her friend, which tells us Claire's opportunity cost of working for three hours is:
A. greater than $36. B. greater than $12. C. less than $36. D. less than $12.
Price ceilings are adopted in most cases because
A. the government favors a non-intervention policy. B. producers need incentives to produce more of the good or service. C. the government wants to create surpluses. D. the government views the current equilibrium price as too high for consumers.