The Stackelberg model is more appropriate than the Cournot model in situations where
A) there are more than two firms.
B) all firms enter the market simultaneously.
C) one firm makes its output decision before the other.
D) firms will be likely to collude.
C
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Is it possible for sellers to benefit more than consumers from a subsidy to buyers?
A. Producers can never benefit more than buyers from a subsidy to buyers. B. Yes, if the supply curve is relatively more elastic than the demand curve. C. Yes, if the sellers need it more. D. Yes, if the supply curve is relatively less elastic than the demand curve.
Which of the following statements regarding the distribution of money income is most correct?
A. The distribution of money income is synonymous with the distribution of goods and services. B. The distribution of money income overstates the extent of poverty in the United States. C. The distribution of money income includes the monetary value of in-kind benefits. D. Statistics on the distribution of money income include the underground economy.
Monopolists are criticized because they are inefficient. What is meant by this statement?
A. Monopolists could use their resources better elsewhere. B. Monopolists don't innovate enough to control pollution. C. Monopolists produce a large quantity of waste. D. Monopolists usually don't produce at the minimum of the ATC.
Suppose the government establishes a price support for soybeans. The new government program will tend to
A) decrease the output of soybeans. B) increase the quantity demanded of soybeans. C) decrease the demand for soybeans. D) increase a farmer's opportunity cost of producing other commodities (such as corn), which could be grown on the same land used to grow soybeans. E) do none of the above.