Because the smallcountry monopolist loses the ability to control the market price, consumers enjoy more quantity, competitive prices, and:
a. a bonus because the foreign goods are of higher quality.
b. a loss because the monopoly loses profits.
c. higher consumer surplus because the monopolist's producer surplus is reduced.
d. a loss because now unions have less power than before.
Ans: c. higher consumer surplus because the monopolist's producer surplus is reduced.
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Given an annual interest rate of 12 percent, what is the present value of receiving $1,000 in 20 years?
A) $890.45 B) $850.23 C) $112.16 D) $103.67
Most firms are not monopolies in the real world because
a. firms usually face downward-sloping demand curves b. supply curves slope upward c. price is usually set equal to marginal cost by firms d. monopolies are not efficient e. there are substitutes for most goods
If Lisa Beth needs special film for her expensive new camera, then for her these two goods are
a. substitute b. complementary c. unit elastic d. elastic e. inelastic
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.