A firm that is the only seller of a good with no close substitutes is a(n)
A. perfect competitor.
B. monopolist.
C. monopolistic competitor.
D. oligopolist.
Answer: B
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Refer to Excise Subsidy. The amount of the subsidy paid to firms is given by
The following questions refer to the accompanying diagram which shows the effects of an excise subsidy given to firms. The initial price and quantity are P0 and Q0, respectively. After the subsidy is granted, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
a. area A + B + E + H.
b. area B + C + D + E + F + G.
c. area D.
d. area F + G + I + J.
The Coase Theorem states that there is different ways to assign property rights if the private sector is to achieve environmental efficiency
a. True b. False Indicate whether the statement is true or false
All else constant, if butter and margarine are substitute goods, then as the price of butter rises,
a. the demand for margarine will fall b. the quantity of butter demanded will fall c. the demand for butter will fall d. the demand for butter will rise e. butter and margarine will become complementary goods, provided that butter is a normal good
When the curve that envelops the series of possible short-run average total cost curves is horizontal, this means that there are:
A. economies of scale. B. diseconomies of scale. C. constant returns to scale. D. diminishing returns.