Economies of scope exist when it is less expensive to produce two or more product lines in a single firm than it is to produce them separately
a. True
b. False
A
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The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 200 and Qd = 500 - 0.02W, where W is the annual wage of a coal miner and Q is the number of coal miners. What is the deadweight loss in the market for coal miners due to the monopsony?
A. $250,000 B. $500,000 C. $125,000 D. $750,000
The price of gasoline has risen and the quantity sold has fallen. This was likely caused by
a. a rise in the price of crude oil. b. a seasonal rise in the demand for gasoline. c. use of a new public transit system. d. the discovery of crude oil in New Jersey.
Once the FOMC announces the result of its meeting the attendees:
A. never discuss the policy issues addressed in the meetings. B. observe a blackout period that lasts for a week following the meeting during which they do not speak publicly about the economic outlook or current monetary policy. C. observe a twenty-four hour blackout period following the meeting during which they do not speak publicly about the economic outlook or current monetary policy. D. it must brief the financial news immediately after and answer questions posed to them.
The increase in spending that occurs because the demand for investment goods increases when the price level falls is known as the:
A. interest rate effect. B. international trade effect. C. price effect. D. wealth effect.