The pure competitor usually charges higher prices and offers more output than the monopolist or oligopolist
Indicate whether the statement is true or false
False
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Which of the following is an example of a normative statement?
A. Tom is a college student. B. Immigration should be allowed in the United States. C. The cost of basic health insurance rose from the previous year. D. The federal minimum wage is $7.25.
An individual in the US wants to buy a car from England which costs 12,00 . pounds. If the exchange rate is $1.75/pound, how much will it cost him in dollar terms?
a. $21,000 b. $6,800 c. $12,000 d. Need more information
The Coase Theorem works best in places that transaction costs for contracts among people is low. Often in the world of torts and externalities both parties can claim that they have rights to impose on others. One case is that of a railroad that is noisy and scares the cattle and the rancher whose cattle sometimes wander in front of moving trains causing damage to them and the train. What does the
Coase say would happen? a. The train should have property right to be safe from wandering cattle, and the rancher should be liable for train damage of rampaging cattle. b. The rancher should have the property right to be safe from noisy trains, and the railroad should be liable for weight loss of cattle from train whistles and rumbling noise. c. If transaction costs are low, the efficient activity will occur, either the rancher or railroad installing fences to protect from rampaging cattle and/or sound insulation with trees, or if it is cheaper, fewer train trips per day. The cheapest or most efficient solution will happen, regardless of who is assigned the original property right.
An import quota or tariff on French wine that raises the prices for wine will probably a. hurt domestic wineries, which will lose business as a result of the higher prices
b. hurt both domestic wine drinkers and domestic wine producers because of a reduction in competition. c. hurt both domestic wine drinkers and domestic wineries but this will be more than offset by a reduction in driving fatalities. d. hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices.