Refer to Figure 18.4. With an import ban, what is the equilibrium price of gloves in Duckland?
A. $0
B. $8
C. $9
D. $12
Answer: D
You might also like to view...
In the open-economy Keynesian model, it always has to be true that
a. planned savings equals planned investment. b. planned savings is greater than planned investment. c. planned savings is less than planned investment. d. none of the above.
If the demand for money is Md = 100 +.25Y – 100r and then the increase in money demand rises by 100, the LM curve shifts to the
a. right by 400. b. right by 100. c. left by 200. d. left by 400. e. none of the above.
The Nash equilibrium for both stores is
a. For megastore to advertise and for superstore to advertise b. For megastore to advertise and for superstore not to advertise c. For megastore not to advertise and for superstore to advertise d. For megastore not to advertise and for superstore not to advertise
Which of the following is not possible when a firm is maximizing its profits?
a. MC = MR b. AVC is at its minimum point c. AFC < AVC d. MC = MR and MC is decreasing e. MC = MR and MC is increasing