Refer to the information provided in Figure 3.1 below to answer the question(s) that follow.
Figure 3.1Refer to Figure 3.1. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D0 to D1?
A. a reduction in the price of sugar used to make Dr. Pepper
B. an increase in the price of 7-UP, assuming 7-UP is a substitute for Dr. Pepper
C. a decrease in income, assuming that Dr. Pepper is a normal good
D. a decrease in the price of Dr. Pepper
Answer: C
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The cost of producing an additional unit of a good or service that falls on people other than the producer is the marginal
A) external cost. B) private cost. C) social cost. D) social benefit. E) None of the above answers is correct.
Structural unemployment is frequently caused by:
a. technological changes that make certain job skills obsolete. b. temporary layoffs in industries such as construction. c. the impact of recessions on employment. d. none of these.
A barrier to entry prevents ________ a monopolistic industry.
A. firms from exiting B. new firms from entering and competing in C. government regulation of D. economic losses in
Refer to the information provided in Figure 13.11 below to answer the question(s) that follow.
Figure 13.11Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. What is the economic welfare loss from having a monopoly instead of a perfectly competitive industry supplying widgets?
A. $0 B. $4,000 C. $16,000 D. Indeterminate from the given information.