× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
5
o
5
4
m
4
b
4
x
4
a
4
l
4
t
4
S
4
m
3
s
3
New Topic  
christopher mar christopher mar
wrote...
Posts: 559
Rep: 0 0
6 years ago
The figure above shows the market for transportation services, which produces an external cost due to the air pollution that is created.
 
  If the market for transportation services is competitive and unregulated, the equilibrium quantity is ________ and the equilibrium price is ________. A) 120; 14
  B) 120; 8
  C) 80; 12
  D) 80; 6



Ques. 2

Adverse selection is created by
 
  A) incentives to change behavior after two parties have reached an agreement.
  B) risk.
  C) lump-sum taxes.
  D) private information.



Ques. 3

What is the best outcome for society: when firms in an oligopoly enter into a collusive agreement to operate as a monopoly or when they act as perfect competitors? Briefly explain your answer.
 
  What will be an ideal response?



Ques. 4

Compared to a single-price monopoly, the output of a perfectly competitive market with the same costs
 
  A) is more than the monopoly's output.
  B) is the same as the monopoly's output.
  C) is less than the monopoly's output.
  D) could be more than, less than, or equal to the monopoly's output.



Ques. 5

Constellation Brands Inc is the world's biggest wine firm with 300-plus brands, from jug wines to coveted California reds, including the Clos du Bois, Geyser Peak and Woodbridge by Robert Mondavi labels.
 
  Based on this characteristic of firms, why would Constellation be more efficient than a market at coordinating economic activity? A) Constellation has economies of scope.
  B) Constellation has lower transaction costs.
  C) Constellation has economies of scale.
  D) Constellation has economies of team production.



Ques. 6

A rent ceiling set above the equilibrium rent efficiently allocates resources in the housing market.
 
  Indicate whether the statement is true or false



Ques. 7

In the market for bicycles, explain what happens to the supply and demand curves when there is an increase in the price of steel used to make bikes.
 
  What will be an ideal response?



Ques. 8

Is there any set of relationships between price elasticity of supply and total revenue similar to the relationships between price elasticity of demand and total revenue?
 
  What will be an ideal response?
Read 23 times
2 Replies

Related Topics

Replies
wrote...
6 years ago
(Answer to Q. 1)  B

(Answer to Q. 2)  D

(Answer to Q. 3)  The best outcome for society is when the firms act as perfect competitors. Perfect competition produces the efficient quantity of output. A monopoly restricts the quantity of output it produces and creates a deadweight loss, which harms society So society is better off if the firms compete rather than collude and operate as a monopoly.

(Answer to Q. 4)  A

(Answer to Q. 5)  A

(Answer to Q. 6)  FALSE

(Answer to Q. 7)  An increase in the price of steel is an increase in the price of a resource used to make the good. As a result, the supply of bicycles decreases and the supply curve shifts leftward. There is no change to the demand, so the demand curve does not shift. The equilibrium price of a bicycle rises and the equilibrium quantity decreases.

(Answer to Q. 8)  No. When the price increases along an upward sloping supply curve, total revenue will increase whether supply is elastic or inelastic. When price decreases along an upward sloping supply curve, total revenue will decrease whether supply is elastic or inelastic.
wrote...
6 years ago
Upwards Arrow Correct again
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  954 People Browsing
Related Images
  
 263
  
 771
  
 580
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 308

Previous poll results: Do you believe in global warming?