One of the negative impacts of export subsidy is that:
a. the price of the domestic good increases in the world market.
b. the domestic supply of the goods increases more than proportionately than increase in demand.
c. the domestic cost of production of the exportable increase.
d. it results in a general deflation and hence the domestic producers incur losses.
e. the domestic consumers are harmed as the subsidies are financed by taxing them.
e
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Cornucopia Media provides cable television service to several cities in the mid-Atlantic region. The firm has access to two new channels that focus on reality television programming, and the marginal cost of providing both new channels is zero
The first channel is Extreme Scottish Sports (ESS) and appeals to younger viewers, and the second channel is Delaware Entertainment and Tourism (DET) and appeals to older viewers. Based on Cornucopia's market research, younger viewers are willing to pay $5 per month for ESS, and their reservation price for DET is $0.50 per month. The same research indicates that older viewers have a reservation price of $1.00 per month for ESS and $4.00 per month for DET. a. Please show how Cornucopia media can increase sales revenue by bundling the two channels rather than selling access to the channels separately. b. The US Congress has recently considered legislation that would allow cable television subscribers to purchase access to separate channels (without bundling). If the law is enacted, what should we expect to happen to sales revenue in cable television markets?
When the prevailing market wage is above equilibrium, we say:
A. there is no unemployment. B. there is a surplus of labor. C. the quantity of labor demanded is more than the quantity supplied. D. All of these are true.