Economics

9. Price-Discriminating Monopolist 9. Price-discriminating monopolist Aa Aa Hube

9. Price-Discriminating Monopolist 9. Price-discriminating monopolist Aa Aa Hubert, a retiree, owns and lives on a piece of land in the desert that isn't worth much. One day, a gi…

9. Private solutions to correct for externalities Aa Aa Suppose that Sally has j

9. Private solutions to correct for externalities Aa Aa Suppose that Sally has just finished smoking a cigarette and is thinking about throwing the cigarette butt onto her neighbo…

9. Private solutions to correct for externalities Consider the following scenari

9. Private solutions to correct for externalities Consider the following scenario: Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chicke…

9. Problems and Applications 09 There are three industrial firms in Happy Valley

9. Problems and Applications 09 There are three industrial firms in Happy Valley. Initial Pollution Level (Units) 50 25 40 Cost of Reducing Pollution by 1 Unit (Dollars) 40 20 30 …

9. Problems and Applications Q9 Little Kona is a small coffee company that is co

9. Problems and Applications Q9 Little Kona is a small coffee company that is considering entering a market dominated by Big Brew. Each company's profit depends on whether Little …

9. Problems and Applications Q9 Structural unemployment is sometimes said to res

9. Problems and Applications Q9 Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have…

9. Problems and Applications Q9 There are three industrial firms in Happy Valley

9. Problems and Applications Q9 There are three industrial firms in Happy Valley. Cost of Reducing Pollution by 1 Unit (Dollars) Initial Pollution Level (Units) 30 45 Firm 10 20 T…

9. RC Cola is considering marketing a new, fruit flavored soft drink. It hires M

9. RC Cola is considering marketing a new, fruit flavored soft drink. It hires Mark-D Design to develop the can logo and design. RC calculates that a good design raises can sales …

9. Refer to the graph below for answering the question that foll (10 poin Averag

9. Refer to the graph below for answering the question that foll (10 poin Average Total Cost for Various Plant Sizes $10 ATC ATC ATC 6 0 1 2 3 4 5 6 7 8 per hour (millions) . In t…

9. Regulating a natural monopoly Consider the local cable company, a natural mon

9. Regulating a natural monopoly Consider the local cable company, a natural monopoly. The following graph shows the monthly demand curve for cable services and the company's marg…

9. Since actual budget deficits surpassed 10 percent of GDP in 2009: A. fiscal p

9. Since actual budget deficits surpassed 10 percent of GDP in 2009: A. fiscal policy has become contractionary. B. the deficits as a percentage of GDP have fallen, but fiscal pol…

9. Smith Construction Inc. needs additional Crushing Equipment the following Dat

9. Smith Construction Inc. needs additional Crushing Equipment the following Data are Available: The financial data for each model are given: Model I) Smart Crush $52,000 I) Suppe…

9. Special interest groups, lobbying, and rent-seeking behavior Large defense co

9. Special interest groups, lobbying, and rent-seeking behavior Large defense contractors often produce items such as tanks and warplanes that even the Department of Defense doesn…

9. Substitutes, complements or unrelated? Data collected in the imaginary econom

9. Substitutes, complements or unrelated? Data collected in the imaginary economy of Perturbia reveals that when the price of a bork decreased by 25%, the quantity of bork sold in…

9. Suppose a fiscal stimulus package that called for a large increase in governm

9. Suppose a fiscal stimulus package that called for a large increase in government spending actually increases governments budget deficit dramatically a. When the government runs…

9. Suppose that a firm knows that the demand for its product is inelastic. It fo

9. Suppose that a firm knows that the demand for its product is inelastic. It follows that if a) the firm will sell more of the product d) the firm's revenue will remain constant …

9. Suppose that a govemment faces a choice among various levels of defense, repr

9. Suppose that a govemment faces a choice among various levels of defense, represented.by the production of missiles, and of food, represented by the productio of com. The follow…

9. Suppose that a monopoly in the market for an HIV drug turns competitive after

9. Suppose that a monopoly in the market for an HIV drug turns competitive after another company discovers another cure. What is likely to happen to prices and quantity in this ma…

9. Suppose that cars produced in Korea are considered inferior goods to American

9. Suppose that cars produced in Korea are considered inferior goods to American consumers. With the U.S. economy out of a recession, this will cause the demand for Korean cars to…

9. Suppose that demand for a good increases and, at the same time, supply of the

9. Suppose that demand for a good increases and, at the same time, supply of the good decreases. What would happen in the market for the good? a. Equilibrium price would decrease,…

9. Suppose the nominal interest rate for 1-year borrowing and lending is 5% in t

9. Suppose the nominal interest rate for 1-year borrowing and lending is 5% in the US, and 3.5% in Japan. Suppose, too, that the nominal yen/dollar exchange rate is currently ¥142…

9. Suppose the wage of unskilled workers is equal to the minimum wage. If a tax

9. Suppose the wage of unskilled workers is equal to the minimum wage. If a tax on labor is levied onthe presence A. workers; does not affect the tax burden of workers B. workers;…

9. The Errata Book Company is a monopolist that sells in two markets. The margin

9. The Errata Book Company is a monopolist that sells in two markets. The marginal-revenue curve in the first market is MR20 -2Q,, where MR is the marginal-revenue in the first ma…

9. The accompanying table shows the demand schedule for vitamin D. Suppose that

9. The accompanying table shows the demand schedule for vitamin D. Suppose that the marginal cost of producing vitamin D is zero. How much would each firm (Firm 1 and Firm 2) in a…

9. The additional output obtained by adding another unit of labor to the product

9. The additional output obtained by adding another unit of labor to the production process is called a. the marginal cost of labor b. the average output of labor c. a variable co…

9. The arguments for restricting trade Suppose there is a policy debate regardin

9. The arguments for restricting trade Suppose there is a policy debate regarding the United States imposing trade restrictions on imported steel rods: A senator from a state with…

9. The difference between GNP and GDP is A) GNP includes income received from ab

9. The difference between GNP and GDP is A) GNP includes income received from abroad and excludes income paid abroad. B) GNP excludes income received from abroad and includes inco…

9. The discount rate and the federal funds rate Aa Aa The discount rate is the i

9. The discount rate and the federal funds rate Aa Aa The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the F…

9. The dual nature of financial markets in developing countries-traditional and

9. The dual nature of financial markets in developing countries-traditional and modern- implies that central banks in developing countries A. play essentially the same role as the…

9. The effects of an import quota Aa Aa The calculator shows the domestic demand

9. The effects of an import quota Aa Aa The calculator shows the domestic demand for and supply of barley in Canada. The horizontal brown line shows the world price of $6 for a bu…

9. The endpoint mover tool Manipulating objects already on the graph Some graphs

9. The endpoint mover tool Manipulating objects already on the graph Some graphs will allow you to manipulate the endpoints of given lines or curves. When you select an endpoint m…

9. The figure below shows the payoff to two airlines, A and B, of serving a part

9. The figure below shows the payoff to two airlines, A and B, of serving a particular route Firm B Do Not Enter Enter -20 Enter 0 10 50 40 Do Not Enter 0 0 If the two airlines mu…

9. The firm in Exhibit 9-3, a monopolist that maximizes profit by charging all c

9. The firm in Exhibit 9-3, a monopolist that maximizes profit by charging all customers the a price, is making a profit of a. $O b. $234 c. $482 d. $960 e. $468 10. Firms can ear…

9. The following table summarizes the short-run production function for your fir

9. The following table summarizes the short-run production function for your firm. Your product sells for $6 per unit, labor costs $6 per unit, and rental price of capital is $10 …

9. The interest rate for US savings equals 5%. The interest rate for European sa

9. The interest rate for US savings equals 5%. The interest rate for European savings equals 4%. E = $1.00 (dollars per euro) Assuming identical time periods for the interest rate…

9. The key elements customer relationship strategy require changes to be made to

9. The key elements customer relationship strategy require changes to be made to of a culture) a) Policies and business proces to place the customer first (a customer-centred b) C…

9. The long run supply curve in different cost industries The long-run supply cu

9. The long run supply curve in different cost industries The long-run supply curve in different cost industries Consider the market for tortilla chips, which is a perfectly compe…

9. The manager of a Casino has installed a game machine where the true proportio

9. The manager of a Casino has installed a game machine where the true proportion that the player will win is set at .10. The manager monitors the machine by taking a sample of 14…

9. The marginal cost curve is the short-run supply curve: a. at all points b. as

9. The marginal cost curve is the short-run supply curve: a. at all points b. as long as the firm is not operating. c. as long as the firm is operating. d. only between minimum av…

9. The market for fertilizer is perfectly competitive. Firms in the market are p

9. The market for fertilizer is perfectly competitive. Firms in the market are producing output, bur are currently making economic losses. a. How does the price of fertilizer comp…

9. The market for lemons Consider a market in which there are many potential buy

9. The market for lemons Consider a market in which there are many potential buyers and sellers of used cars. Each potential seller has one car, which is either of high quality (a…

9. The money demand curve is vertical because the Fed determines how much money

9. The money demand curve is vertical because the Fed determines how much money is circulating in the economy. A) True B) False 10. A rise in the interest rate causes the money de…

9. The payments you make on your car loan are given in terms of dollars. As pric

9. The payments you make on your car loan are given in terms of dollars. As prices rise, you notice that you give up fewer goods to make your payments. Based on this information, …

9. The real minimum wage was at its all-time high A) shortly after the increase

9. The real minimum wage was at its all-time high A) shortly after the increase in 1992 B) shortly after the increase in 1968. C) shortly after the increase in 1980 D) at its ince…

9. The short-run cost function of a company is given by the equation TC 200 + 53

9. The short-run cost function of a company is given by the equation TC 200 + 534, where TC is the total cost and q is the total quantity of output, both meas- ured in thousands. …

9. The tort of assault and the tort of battery A) can occur independently or tog

9. The tort of assault and the tort of battery A) can occur independently or together 8) require proof of each of the separate elements of negligence. C) cannot both occur in the …

9. The total welfare cost of a monopoly that engages in rent-seeking activities:

9. The total welfare cost of a monopoly that engages in rent-seeking activities: a. equals only the portion of lost consumer surplus that is not transferred to the monopolist b. i…

9. The unemployment rate is typically lower in the United States than in most Eu

9.   The unemployment rate is typically lower in the United States than in most European countries, and the duration of unemployment in the United States is much less likely to be…

9. True or false. Other things equal, the welfare loss associated with a negativ

9. True or false. Other things equal, the welfare loss associated with a negative production externality for a good is smaller when the demand for the good is elastic than when it…

9. Two firms producing the same product agree to collude by restricting their to

9. Two firms producing the same product agree to collude by restricting their total production to drive up the market price for their product and make profits of $18 million each.…