Based on the above information, at what price does the firm consider shutting-down?
a. $25
b. $0
c. $15
d. $10
d
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Deadweight loss measures the inefficiency as the loss of
A) consumer surplus only. B) consumer surplus minus producer surplus. C) consumer surplus plus producer surplus. D) producer surplus only.
According to purchasing power parity, the relationship among the domestic price (P), the foreign price (P ), and the nominal exchange rate (e), can be written as
A) P = e - P . B) P = P - e. C) P = eP . D) P = e/P .
Which of the following might be a method that the government could use to correct a negative externality?
A) an effluent fee on waste from the production of goods that create negative externalities B) government subsidies to producers of goods that create negative externalities C) financing additional production of goods that create negative externalities D) encouraging overallocation of resources of production of goods that create negative externalities
Supplier power tends to be higher when
a. Suppliers are concentrated b. There are high costs to switching between suppliers c. Both A&B d. None of the above