A buyer's consumer surplus on a unit of a good is its value to that buyer minus the market price
a. True
b. False
A
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Refer to the figure above. With the tariff, the quantity of imports falls to
A) 10,000 units. B) 12,000 units. C) 14,000 units. D) 22,000 units.
The common factors that give rise to all principal-agent problems include the
a. unobservability of some manager-agent action b. presence of random disturbances in team production c. the greater number of agents relative to the number of principals d. a and b only e. none of the above
The marginal revenue curve for a monopolist is
A. always above the demand curve. B. generally below the average cost curve. C. always above the average revenue curve. D. always below the demand curve.
Which of the following is not part of the pollution problem?
A. The absence of markets for goods like clean air and clean water B. The lack of well-defined property rights to clean air and clean water C. The unreliability of voluntary programs to cut pollution D. The willingness of citizens to take steps to reduce detrimental externalities