Refer to above figure. The monopolist can export as much as it likes of its steel at the world price of $5/ton. How much steel will the monopolist sell, and at what price?
What will be an ideal response?
It would sell 10 million tons at $5/ton.
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In the following situation the tax system is Taxable income $5,000 $10,000 $20,000 Tax payments $500 $600 $1,600
a. progressive b. proportional c. regressive d. based on the benefits received e. there is insufficient information to answer the question
If the Fed increases the money supply in response to positive demand shocks, it
a. lowers the interest rate b. reduces each type of unemployment c. adds its own positive demand shock d. creates financial stability e. crowds out private investment
Since the costs of negative by-products are not deducted,
Economic rent is paid
A. only to landlords. B. to resources which would be made available for lower payments. C. illegally. D. only in socialist economies.