Refer to the diagram, where S d and D d are the domestic supply and demand for a product and P c is the world price of that product. With a P c P t per-unit tariff, per-unit revenue received by domestic and foreign producers respectively will be:
A. P c and P a .
B. P a and P c .
C. P a and P t .
D. P t and P c .
D. P t and P c .
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A merger between a firm extracting petroleum and a firm refining petroleum is a
A) conglomerate merger. B) diagonal merger. C) horizontal merger. D) vertical merger.
Suppose a firm's hourly marginal product of labor is given by MPN = A (200 - N)
(a) If A = 0.2 and the real wage rate is $10 per hour, how much labor will the firm want to hire? (b) Suppose the real wage rate rises to $20 per hour. How much labor will the firm want to hire? (c) With the real wage rate at $10 per hour, how much labor will the firm want to hire if A rises to 0.5?
Proposals for bilateral reduction of tariffs in the U.S. and France have been developed through
A. CAFTA. B. NAFTA. C. UNESCO. D. GATT.
Below the short-run shutdown price, the firm
A. is earning negative economic profits. B. is making a normal rate of return on its capital investment. C. is earning positive economic profits. D. may be earning a positive or negative economic profits depending upon costs.