The total tariff revenue to the government of an imported good is found by adding the tariff to the quantity of the good imported.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2A monopolist who attempts to bundle her product with one that is produced and sold in a competitive market is likely to make a smaller profit than one who does not bundle his product with such a good.
Indicate whether the statement is true or false
QUESTION 3Which of the following is an industry without significant barriers to entry?
a. Electricity generation
b. Natural gas distribution
c. Cable television provision
d. Corn farming
e. Postal services
QUESTION 4Say that a monopolist is currently operating on the inelastic region of its demand curve. To maximize its profits, it should:
a. raise its prices.
b. lower its prices.
c. maintain its current price.
d. either raise or lower its prices, depending on how high its marginal cost curve is.
QUESTION 5In order to protect key industries, some countries impose taxes on their exports instead of imports, mainly because it is easier to collect taxes from the export industry.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6People in the city of Maurus have a flatter demand curve for television sets than people in the city of Sienna. It can be concluded that a producer of television sets can price discriminate by charging a higher price in Maurus than in Sienna.
Indicate whether the statement is true or false
QUESTION 7In which of the following situations, is a barrier to entry into a monopoly least likely to exist?
a. A large firm enjoys economies of scale.
b. The tariffs on foreign goods are eliminated by the government.
c. A company is the sole inventor of what it produces and no one else can make a good substitute.
d. Government restrictions such as license requirements are enacted.
e. A company is the only owner of an essential resource needed to produce its product.
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