Refer to above figure. What is the consumer surplus enjoyed by Hungarian consumers of Boeing aircraft in the situation?
What will be an ideal response?
$8 Million.
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What should a profit maximizing monopolist do if she is currently producing where MC < MR?
a. Increase output until MC = MR. b. Decrease output until MC = MR. c. Shut down in the long run. d. Keep producing at this level. e. Operate only in the short run.
Suppose the following: (1 ) the wage rate falls, (2 ) business taxes decline, (3 ) any change in SRAS is greater than any change in AD. Based on this information, in the short run Real GDP will __________ and the price level will __________
A) rise; rise B) fall; rise C) fall; fall D) rise; fall E) none of the above
Suppose Russia can produce either 600 pianos or 400 HDTVs, and Italy can produce either 300 pianos or 150 HDTVs. Implicitly, Russia has
A. Both an absolute and a comparative advantage in HDTVs. B. Neither a comparative nor an absolute advantage in HDTVs. C. An absolute but not necessarily a comparative advantage in HDTVs. D. A comparative but not necessarily an absolute advantage in HDTVs.
Refer to the above figure. The firm is currently producing at Q1. The firm should
A. increase production. B. reduce production. C. shut down. D. leave production as it is.