Refer to Horizontal Merger. After the merger, producer's surplus is equal to
The following questions refer to the accompanying diagram, which shows the effects of a horizontal merger. Before the merger, the firm behaves competitively producing Q0 and charging P0. The merger lowers the firm's marginal cost and gives the firm enough market power to switch to the monopoly equilibrium.
a. area A + C + F.
b. area C + D + F + G.
c. area C + D + E - F - G.
d. area C + D.
b. area C + D + F + G.
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A production possibilities curve that is bowed out represents the case of
A) constant costs. B) increasing costs. C) decreasing costs. D) internal costs. E) external costs.
In colonial America, the average wage laborer
(a) received health care benefits, over-time pay and injury compensation. They also worked in safe and healthy environments. (b) achieved a standard of living significantly higher than those standards realized throughout the world. (c) possessed few labor rights, privileges and protections, while being denied the right to vote or organize. (d) had a higher standard of living than workers in Europe but lower health standards because of the rural, isolated conditions of colonial living.
A firm produces 500 units per week. It hires 20 full-time workers (40 hours/week) at an hourly wage of $15 . Raw materials are ordered weekly and they costs $10 for every unit produced. The weekly cost of the rent payment for the factory is $2,250 . How do the overall costs breakdown?
a. total variable cost is $17,000 . total fixed cost is $2,250; total cost is $19,250 b. total variable cost is $12,000 . total fixed cost is $7,250; total cost is $19,250 c. total variable cost is $5,000 . total fixed cost is $14,250; total cost is $19.250 d. total variable cost is $5,000 . total fixed cost is $2,250; total cost is $7,250
Bank depositors will not lose their deposits in a banking panic if:
A. the actual reserve-deposit ratio equals the desired reserve-deposit ratio. B. there is 100 percent reserve banking. C. there is a central bank. D. there is fractional reserve banking.