The incidence of the tax between buyers and sellers depends only on the elasticity of demand.
Indicate whether the statement is true or false
Ques. 2In the above figure, the monopsony wage rate is ________ and the quantity of labor is ________.
A) 7.00; 150 hours
B) 8.00; 200 hours
C) 6.00; 100 hours
D) 8.00; 100 hours
Ques. 3Discrimination ________ the group being discriminated against and ________ the group being favored.
A) decreases the demand for; increases the demand for
B) increases the demand for; decreases the demand for
C) decreases the supply of; increases the supply of
D) increases the supply of; decreases the supply of
Ques. 4Selling costs, such as advertising, are likely to be a large share of total cost in an industry that is
A) perfectly competitive.
B) monopolistically competitive.
C) a monopoly.
D) non-profit.
Ques. 5What are the two conditions that are met if a consumer is maximizing utility?
What will be an ideal response?
Ques. 6The market for maple syrup is perfectly competitive. Suppose that the market is in long-run equilibrium when the market demand for maple syrup increases. What happens in the short run?
A) Firms will enter the market.
B) Some of the existing firms shut down.
C) The firms decrease production.
D) The firms increase production.
Ques. 7The Clayton Act repealed the Sherman Act so that only the Clayton Act remains in force. Is the previous statement correct or incorrect?
What will be an ideal response?
Ques. 8It is easier for a monopolist to price discriminate between groups for a service than for a good because
A) it is easier to calculate average willingness to pay for services.
B) it is easier to distinguish between groups of customers for services than customers for goods.
C) it is easier for consumers to resell goods than resell services.
D) customers for goods usually do not differ with respect to their average willingness to pay.
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