Donna owns the only dog grooming salon on Lonely Island. The figure above shows the dog grooming ...

Donna owns the only dog grooming salon on Lonely Island. The figure above shows the dog grooming market. Donna is a single-price monopoly that maximizes profit by charging ________ per grooming and producing ________ groomings per day.
 
  A) 30; 8
  B) 20; 8
  C) 20; 12
  D) None of the above answers is correct.

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Ques. 2

In the above table, what is the four-firm concentration ratio for the Gadgets industry?
 
  A) 25 percent
  B) 40 percent
  C) 250 percent
  D) 1,000 percent

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Ques. 3

The figure above shows the market for milk in Cowland. A subsidy paid to producers of 1 per gallon of milk is introduced. If there are no external costs and no external benefits, the marginal benefit of the last gallon of milk consumed is
 
  A) 3.50 a gallon.
  B) 4.00 a gallon.
  C) 4.50 a gallon.
  D) 5.00 a gallon.

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Ques. 4

The Coase theorem is the proposition that if property rights exist, the number of parties is small, and transactions costs are low
 
  A) external costs result in deadweight losses.
  B) external benefits result in deadweight losses.
  C) private transactions are efficient.
  D) public transactions are efficient.

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Ques. 5

All shredded wheat producers have decided to add a new ingredient to shredded wheat, the crunch enhancer. Crunch enhancer keeps cereals crisper longer in milk and, as a result, consumers decide they like shredded wheat more than before.
 
  What happens to the supply and demand curves for shredded wheat now that is costs more to produce and consumers like it better? A) The supply and demand curves both shift rightward.
  B) The supply curve shifts rightward and the demand curve doesn't shift.
  C) The supply curve shifts leftward and the demand curve shifts rightward.
  D) The supply curve shifts leftward and the demand curve doesn't shift.