With an optimal two-part tariff
A) all consumer surplus is transformed into profit. B) consumer surplus equals producer surplus.
C) the firm earns zero profit. D) consumers maximize consumer surplus.
A
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Which of the following is an example of an automatic stabilizer?
a. public works b. unemployment compensation c. interest rates d. highway spending
All of the following are associated with a mixed economy except
a. some public influence over the workings of free markets. b. public ownership mixed in with private property. c. homogenization. d. different countries blending the state and market sectors in different ways.
If climate change were to reduce the output per acre of wheat but not the output of other crops, what effect this would have on the soybean market?
A. The quantity demanded will increase and the demand will shift right. B. The supply of soybeans will shift left and price will rise. C. The quantity demanded of soybeans will rise and price will increase. D. The demand for soybeans would shift right and the price and quantity would rise.
A problem with using the judgment by performance criterion is that:
A. the court must decide whether to use concentration ratios or the Herfindahl index. B. it is difficult to determine the relevant market. C. each action of a firm must be analyzed separately and within a particular context. D. it is difficult to determine the relevant industry.