During the 1990s, deadweight losses per job saved through tariffs and quotas in the apparel industry
A) were greater than the wages earned in apparel jobs.
B) were small enough to ignore.
C) were less than the value of the jobs saved.
D) increased net national welfare.
A
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Which of the following describes the market structure of monopoly?
a. many firms with some control over price, and considerable product differentiation b. many firms with no control over price, producing identical products with no differentiation c. a few firms with some control over price, producing similar products which are close substitutes d. a few firms with no control over price, producing highly differentiated products e. a single firm producing all of the output for the industry
Which of the following is a characteristic of a competitive price-taker market?
a. Profit maximizing firms in the market will expand output until price equals average variable cost. b. The market demand curve for the product is a horizontal line. c. There are many firms in the market, each producing a small share of total market output. d. The product produced by each of the firms is differentiated.
All of the following are considered input barriers to entry except?:
A) control of a key raw material by a single firm.
B) the ability to obtain financing for capital projects at more favorable rates than potential competitors.
C) the fact that workers in a particular industry belong to a union.
D) a patent on a specialized type of capital that is needed to produce a particular product.
Refer to the table below. Suppose that the consumer's income increased from $20 to $30. What would be the utility-maximizing combination of products X and Y?
Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4 and the price of product Y is $2. The income of the consumer is $20.
A. 3X and 3Y
B. 4X and 4Y
C. 5X and 4Y
D. 5X and 5Y