Without restrictions, the market supply curve is horizontal at P = 5, and the inverse demand curve for taxi cab rides is P = 20 - Q in a competitive market. Subsequently, only 10 taxi cabs are allowed in the market. This results in a deadweight loss of
A) 0.
B) 5.5.
C) 12.5.
D) 25.
C
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City-Mart is the only employer of sales clerks in Panburg. In the figure above S is the labor supply curve faced by City-Mart, VMP is City-Mart's value of marginal product curve, and MCL is its marginal cost of labor curve
The lowest wage rate at which City-Mart can hire 40 hours of labor per day is A) $8 per hour. B) $12 per hour. C) $4 per hour. D) $9 per hour.
If Mario's Pizza, a large frozen pizza distributor, builds a tomato sauce plant near Red Tomatoes, a large tomato farm, to reduce the costs of transporting fresh tomatoes, the tomato sauce plant is a(n) ________.
A) negotiation cost B) monitoring cost C) information asset D) transaction-specific asset
Figure 36-7
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In Figure 36-7, there are three aggregate expenditure functions (C + I + G + X? IM) for an open economy. Which of the following would cause a movement from B to A?
A. A recession in Southeast Asia B. An economic expansion in Japan C. A depreciation of the dollar D. An increase in the interest rate
If Microsoft stock has a constant net return each year, then the value of a share of Microsoft stock is determined by
a. subtracting Microsoft's total costs from its total revenue. b. multiplying the annual net income by the number of shares. c. dividing the annual net income from the asset by the interest rate. d. both a and b above.