The above figure shows supply and demand curves for milk. If the government passes a $2 per gallon specific tax, the loss in consumer surplus will equal
A) b + c + f + g.
B) f + g.
C) b + f.
D) c + g.
C
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If you know that total fixed cost is $200, total variable cost is $600, and total product is 4 units, then average total cost must be
A. $200. B. $250. C. $3,200. D. $800.
In an ideal free unregulated market
a. supply curves reflect all negative externalities. b. external benefits are abundant. c. all individual and social needs are met by the market. d. optimal quantities of all goods and services are produced.
A higher required reserve ratio _________ the value of the simple deposit multiplier
A. Increases B. Decreases C. Eliminates
Oligopoly is a situation when there
A. are too many firms in the industry and there is excess capacity. B. is one large firm and many smaller firms forming a competitive fringe. C. is one firm in the industry that is large relative to the size of the economy. D. are a few large firms in the industry.