Table 14.2In Table 14.2, Market 2 would be in equilibrium if buyers believed lemons account for:
A. 55% of the market.
B. 65% of the market.
C. 70% of the market.
D. 80% of the market.
Answer: C
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Since a monopoly faces a downward-sloping demand curve,
A. then, as Adam Smith wrote, “the price of monopoly is upon every occasion the highest which can be got.” B. price always exceeds average revenue. C. marginal revenue increases as output increases. D. the monopolist is a price maker.
The people who immediately benefit from a minimum wage are
A) employers who now pay the minimum wage. B) those people who enter the labor force to search for minimum wage jobs. C) the workers who retain their jobs after enactment of the minimum wage. D) everyone, both demanders and suppliers, because the minimum wage benefits everyone. E) all workers.
For which of the following items is demand likely to be the most price elastic?
a. Tide liquid laundry detergent b. laundry detergent in general c. powdered laundry detergent d. liquid laundry detergent
If the hourly wage of German workers is $6, the hourly wage of Canadian workers is $10, and German workers produce half as much output per hour as Canadian workers, all else equal, it would be efficient to locate production facilities in:
A. Canada since the cost per unit of output will be higher. B. Canada since the cost per unit of output will be lower. C. Germany since the cost per unit of output will be higher. D. Germany since the cost per unit of output will be lower.