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In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ?

Economics Mcqs, Non-Tariff Trade Barriers /
In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ?

A. The quota results in efficiency reductions but the tariff does not
B. The tariff results in efficiency reductions but the quota does not
C. They have identical impact on how much is produced and consumed
D. They have identical impact on how income is distributed

In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ? Read More »

Economics Mcqs, Non-Tariff Trade Barriers

If a tariff and import quota lead to equivalent increases in the domestic price of steel, then ?

Economics Mcqs, Non-Tariff Trade Barriers /
If a tariff and import quota lead to equivalent increases in the domestic price of steel, then ?

A. the quota results in efficiency reductions but the tariff does not
B. The tariff results in efficiency reductions but the quota does not
C. They have different impacts on how much is produced and consumed
D. They have different impacts on how income is distributed

If a tariff and import quota lead to equivalent increases in the domestic price of steel, then ? Read More »

Economics Mcqs, Non-Tariff Trade Barriers

Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero-marginal cost of study production. If ABC publishing charges separate price for both products its best strategy is to charge price that when combined, total ?

Economics Mcqs, Oligopoly /
Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero-marginal cost of study production. If ABC publishing charges separate price for both products its best strategy is to charge price that when combined, total ?

A. Rs 85
B. Rs 75
C. Rs 80
D. Rs 60

Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero-marginal cost of study production. If ABC publishing charges separate price for both products its best strategy is to charge price that when combined, total ? Read More »

Economics Mcqs, Oligopoly

Many economics argue that resale price maintenance ?

Economics Mcqs, Oligopoly /
Many economics argue that resale price maintenance ?

A. has a legitimate purpose of stopg discount retailers from free riding on the services provided by full services retailers?
B. is price fixing and, therefore is prohibited by law
C. is price fixing and therefore, is prohibited by law and enhances the market power of the producer
D. enhances the market power of the producer

Many economics argue that resale price maintenance ? Read More »

Economics Mcqs, Oligopoly

As the number of sellers in an oligopoly increases ?

Economics Mcqs, Oligopoly /
As the number of sellers in an oligopoly increases ?

A. output in the market tends to fall because each firm must cut back on production
B. the price in the market moves further from marginal cost
C. collusion is more likely to occur because a larger number of firms can place pressure on any firm that defects
D. The price in the market moves closer to marginal cost

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Economics Mcqs, Oligopoly

When an oligopolist individually chooses its level of production to maximize its profits, it produces an output that is ?

Economics Mcqs, Oligopoly /
When an oligopolist individually chooses its level of production to maximize its profits, it produces an output that is ?

A. more than the level produced by a monopoly and less than the level produced by a competitive market
B. less than the level produced by a monopoly and more than the level produced by a competitive market
C. less than the level produce by either monopoly or a competitive market
D. more than the level produced by either monopoly or a competitive market

When an oligopolist individually chooses its level of production to maximize its profits, it produces an output that is ? Read More »

Economics Mcqs, Oligopoly

Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?

Economics Mcqs, Oligopoly /
Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?

A. Should produce more units
B. has maximized profits.
C. is in a Nash equilibrium
D. Should produce fewer units
E. should exit the industry.

Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ? Read More »

Economics Mcqs, Oligopoly