When prices rise,
A. the rich benefit at the expense of the poor.
B. the poor benefit at the expense of the rich.
C. both the rich and poor lose real income.
D. the effect in the rich and poor is uncertain.
Answer: D
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Suppose the four-firm concentration ratio for an industry is 10 percent. This value indicates ________. If the four-firm concentration ratio for another industry is 95 percent, this value indicates ________
A) the industry is competitive; the industry has very little competition B) the industry has very little competition; the industry is very competitive C) the industry has firms worldwide; the industry is concentrated in one country D) the HHI will be high; the HHI will be low
Answer the following statements true (T) or false (F)
1) In a Cournot oligopoly, the total profit is less when two firms compete compared to the cartel profits. 2) The more firms in a Cournot oligopoly, the greater the profits for each firm. 3) As the number of firms in a Cournot oligopoly increases, the equilibrium quantity gets closer and closer to the monopoly quantity. 4) In a Cournot oligopoly, if a firm's marginal cost is not constant, its best-response curve will not be linear. 5) In a Stackelberg oligopoly, the follower second firm determines its production from its Cournot best-response function.
Suppose that a firm uses both labor (L) and capital (K) as inputs. The firm's long-run production function is Q = F(L,K) = 5?L?K. If the firm has 100 units of capital, what is its short-run production function?
A. Q = F(K) = 50?K B. Q = F(L) = 500?L C. Q = F(L,K) = 50?L?K D. Q = F(L) = 50?L
How do the marginal costs of pollution reduction and the marginal costs of pollution damage change as pollution levels increase?
a. The marginal costs of pollution reduction remain constant and the marginal costs of pollution increase b. The marginal costs of pollution reduction increase and the marginal costs of pollution damage increase c. The marginal costs of pollution reduction increase and the marginal costs of pollution damage decrease d. The marginal costs of pollution reduction decrease and the marginal costs of pollution damage increase e. The marginal costs of pollution reduction decrease and the marginal costs of pollution damage decrease