The market for soybeans in Canada consists solely of domestic buyers of soybeans and domestic sellers of soybeans if
a. consumer surplus equals producer surplus in the Canadian soybean market.
b. total surplus exceeds consumer surplus in the Canadian soybean market.
c. Canada permits international trade in soybeans.
d. Canada forbids international trade in soybeans.
d
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Using the above figure, which of the following quantities of CDs has the largest deadweight loss?
A) 3 million CDs B) 4 million CDs C) 7 million CDs D) The deadweight losses associated with the three quantities given above are all equal.
Your company sells health food products, and you have recently developed a new high-protein drink (HPD) as well as a high-carbohydrate energy bar (HCE)
As the product manager for the firm, you are responsible for setting the pricing policy for the new products. You are considering a bundled package that includes both products, and you assume the marginal cost of production is zero for planning purposes. You have identified four basic types of consumers who may buy these new products, and their reservation prices for the two new products are provided in the following table: Type HPD HCE A $0.50 $1.80 B $0.80 $1.10 C $1.00 $0.90 D $1.40 $0.30 a. Suppose you sell the two products separately, and each buyer is expected to purchase one unit of the product per day. Which prices for HPD and HCE maximize daily revenue? What is your daily revenue from selling both products to the four customers under separate pricing? b. If you offer the two products under a pure bundling strategy, what is the revenue maximizing bundle price? What is the daily sales revenue from the pure bundling scheme? c. Please develop a mixed bundling strategy that generates higher daily sales revenue than the pure bundling strategy. What is the daily sales revenue generated under mixed bundling?
If the aggregate supply curve shifts outward, then unemployment
a. and inflation will both decrease. b. and inflation will both increase. c. will increase and inflation will decrease. d. will decrease and inflation will increase.
Consider an economy that is producing inside its production possibilities curve. This economy could move closer towards its production possibilities curve by:
A. Distributing incomes more equally B. Employing more of its available resources C. Increasing the levels of wages and prices D. Acquiring additional resources