If a firm that is losing money shuts down and has variable costs of $10 million and continues to operate, we may conclude that its total revenue is __________.
Fill in the blank(s) with the appropriate word(s).
more than $10 million
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When the production of a good creates an external cost, by setting the tax rate equal to the ________, firms can be made to behave in the same way as they would if they bore the cost of the externality directly
A) marginal external cost B) marginal social benefit C) marginal private benefit D) marginal social cost
The theory of countervailing power asserts that
a. government must counter the power of big business b. the government must nationalize all important industries c. market power in one sector will be held in check by market power in another sector d. big firms will all join together to raise prices and profits e. small firms are a sufficient countervailing force to neutralize the harmful effects of big business
From a consumer's viewpoint, which of the following policies would be least desirable?
A. Quotas on imported goods. B. Tariffs on imported goods. C. No trade. D. Free trade.
The exchange rate for the Mexican peso changes from $1 = 5 pesos to $1 = 6 pesos. This change will lead to ________.
A. Mexican goods becoming more expensive for Americans B. U.S. goods becoming less expensive for Mexicans C. an increase in Mexican imports from the U.S D. a decrease in U.S. exports to Mexico