For a retailer buying from a wholesaler, volume discounts do not violate the Robinson-Patman act because
a. To sell larger volumes, the retailer himself has to offer discounts
b. To sell larger volumes, the retailer has to incur costs in promoting the item
c. To sell larger volumes, the retailer has to hold the items in inventory longer
d. All of the above
d
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Suppose the supply curve and the demand curve both have unitary elasticity at all prices. The price increase to consumers resulting from a specific tax of $1 imposed on sellers will be
A) $1. B) 50 cents. C) zero. D) Impossible to calculate without knowing the slope of the supply curve.
All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?
a. Productivity will definitely fall. b. Productivity will definitely be unchanged. c. Productivity will definitely rise. d. None of the above are necessarily correct.
In the long run, the typical firm in this market will produce a quantity equal to 
A. q3. B. q2. C. q1. D. Q1.
Which of the following statements is TRUE?
a. The HeckscherOhlin model offers a reasonable explanation of the pattern of trade and the gains from trade. b. The HeckscherOhlin trade model does not offer an explanation of the pattern of trade. c. The HeckscherOhlin trade model does not offer an explanation of the gains from trade. d. The Riparian trade model (with labor as the only input) offers a better explanation of the pattern of trade and the gains from trade than the HeckscherOhlin model.