Quantity Decision
What will be an ideal response?
- Keep increasing Q if MB > MC
- Ex: How many hours to study?
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As the Federal Trade Commission currently interprets the Herfindahl-Hirschman index (HHI), an industry is considered to be highly concentrated if the HHI value is above
A) 100. B) 1,000. C) 2,500. D) 5,000.
Unemployment insurance
a. may improve the ability of the economy to match workers with appropriate jobs. b. reduces the job search efforts of the unemployed. c. increases the amount of frictional unemployment in the economy. d. All of the above are correct.
Using the above table, a unit tax of $2 is imposed on the product. How much of the tax is paid by the producer?
A. $3 B. $2 C. $1 D. unable to determine
A professional hockey franchise is trying to assemble a parcel of land to build an arena. There is one vacant warehouse on the land the franchise needs. In this case,
A) eminent domain will reduce transactions costs and make a pie-increasing arena possible. B) eminent domain will reduce the likelihood of holdouts and make a pie-increasing arena possible. C) eminent domain is not called for as the land can probably be acquired more efficiently through bargaining. D) Both A and B are correct.