The chemical industry has a Lerner index of 0.67. Based on this information, a firm with marginal cost of $10 should charge a price of:
A. $30.30.
B. $14.93.
C. $3.30.
D. $6.70.
Answer: A
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Tariffs ________ prices for domestic consumers and import quotas ________ prices for domestic consumers
A) lower; raise B) raise; also raise C) raise; lower D) lower; also lower
It may be misleading to call water a necessity because
A) the amount of water a community consumes does not vary with the price people must pay for water. B) the demand for water does not obey the law of demand. C) the demand for water is highly elastic. D) the demand for water is highly inelastic. E) there are many uses of water for which good substitutes exist.
Given the scenario described, if the market price of hammers decreased from $15 to $11:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13.. A. total producer surplus would fall by $4. B. producer surplus for each producer falls by $4. C. House Depot's producer surplus falls by $4. D. total producer surplus falls by $8.
In the 1990s, the Danish government passed laws tightening eligibility requirements for receiving unemployment benefits. What happened in Denmark as a result of this policy change?
a. The size of the labor force declined b. The unemployment rate decreased c. More teenagers entered the labor force d. The wage rate increased e. The natural rate of unemployment increased