Suppose that an industry is characterized by a few firms and price leadership. We would expect that:
A. price would equal marginal cost.
B. price would equal average total cost.
C. price would exceed both marginal cost and average total cost.
D. marginal revenue would exceed marginal cost.
Answer: C
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Refer to above figure. What is the amount of efficiency loss resulting from imposition of the tariff?
What will be an ideal response?
You go to the movieplex where movies ordinarily cost $9 . You are intending to see a movie for which you have a $3 off coupon good for only that movie at that time. However, when you get there you see a friend who asks if you would rather see a new release. Both movies start and end at the same time. If you decide to see the new release with your friend, what is your opportunity cost?
a. the amount you value the first movie + $3 b. the amount you value the first movie + $9 c. $3 d. $9
Minimum-wage laws are one reason there is always some unemployment in the U.S. economy
a. True b. False Indicate whether the statement is true or false
When analyzing the impact of a budget deficit, an economist will focus on
A. strictly the ratio of the deficit to GDP (it doesn't matter what is purchased with the borrowed money). B. strictly the amount borrowed. C. strictly the inflation-adjusted amount borrowed. D. the ratio of the deficit to GDP and whether what is purchased with the borrowed money can be considered an investment.