Question 37(1 point) The effect of a tariff Question 37 options: can lead to a m

Question

Question 37(1 point)

The effect of a tariff

Question 37 options:

can lead to a monopoly advantage for firms inside the U.S. since they become the sole suppliers inside the U.S.

can lead to economies of scale for firms inside the U.S.

will be more beneficial to large firms than to small firms.

is negligible since it applies to firms outside the U.S.

Question 38 (2 points)

Economies of scale may be a barrier to entry in a situation in which

Question 38 options:

only small-scale production can meet the constantly changing market demand.

only large-scale production can lower the per-unit cost of production.

only small-scale production can lower the per-unit cost of production.

large-scale production is inefficient.

Question 39 (2 points)

The profit-maximizing monopolist will operate in a price range over which

Question 39 options:

supply is elastic.

demand is elastic.

the price elasticity of demand is less than 1.

demand is inelastic.

Question 40(1 point)

For a profit-maximizing monopolist,

Question 40 options:

P = MR.

P = MC.

P > MC.

P = ATC.

can lead to a monopoly advantage for firms inside the U.S. since they become the sole suppliers inside the U.S.

can lead to economies of scale for firms inside the U.S.

will be more beneficial to large firms than to small firms.

is negligible since it applies to firms outside the U.S.

Question 38 (2 points)

Economies of scale may be a barrier to entry in a situation in which

Question 38 options:

only small-scale production can meet the constantly changing market demand.

only large-scale production can lower the per-unit cost of production.

only small-scale production can lower the per-unit cost of production.

large-scale production is inefficient.

Question 39 (2 points)

The profit-maximizing monopolist will operate in a price range over which

Question 39 options:

supply is elastic.

demand is elastic.

the price elasticity of demand is less than 1.

demand is inelastic.

Question 40(1 point)

For a profit-maximizing monopolist,

Question 40 options:

P = MR.

P = MC.

P > MC.

P = ATC.

Explanation / Answer

will be more beneficial to large firms than to small firms. SInce large firms will not be affected as much as small firms by tariff. only large-scale production can lower the per-unit cost of production.Small firms can not take advantage of economies of scale and hence it becomes a barrier demand is elastic. When demand is elastic, firm gets leagr amount of revenue. P > MC. For monopolist, P =AR which is more than MR and MC = MR

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.