Suppose Thelma and Louise both sell fried green tomatoes in a competitive price-taker market. If Louise increases her output,
a. Thelma must reduce output
b. the price Thelma can charge falls
c. the price Thelma can charge rises
d. the price Thelma can charge is unaffected
e. Thelma's profits must fall
D
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The economic impact of the multiplier is ____, and then becomes ____
a. slow, faster b. small, tiny c. large, smaller d. small, larger
What receives government subsidies that are in place to protect the population rather than for economic reasons?
What will be an ideal response?
Is the firm a perfect competitor or an imperfect competitor?
A quota differs from a tariff in that quotas:
A. limit the volume of imports more than tariffs. B. do not generate tax revenues, unlike tariffs. C. do not increase the price of imports as much as tariffs. D. reduce consumer welfare more than do tariffs.