When a country that imports a particular good imposes an import quota on that good,
a. producer surplus increases and total surplus increases in the market for that good.
b. producer surplus increases and total surplus decreases in the market for that good.
c. producer surplus decreases and total surplus increases in the market for that good.
d. producer surplus decreases and total surplus decreases in the market for that good.
b
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The goal of any monopolist is to maximize:
a. economic profits. b. normal profits. c. price. d. consumer welfare. e. output.
With a(n) ________, the government allows the market to determine the exchange rate of a currency.
A. dirty float B. crawling peg C. adjustable peg D. clean float
A shift of the demand curve for thin-crust pizza would not be caused by a change in:
A) the price of thick-crust pizza. B) buyers' incomes. C) the popularity of thin-crust pizza. D) the price of thin-crust pizza.
Suppose that an industry has a Herfindahl-Hirschman index of 2,000 . Two firms have proposed a merger. Firm A has a current market share of 9 percent. Firm B has a market share of 5 percent
Will the Justice Department challenge the merger? Explain.