Suppose that government decides to create a license for widget makers. Only licensed widget makers are allowed to produce widgets. Moreover, only half of the current widget producers are eligible to obtain the license. What will happen with the supply curve of widgets?
A) It will not change.
B) It will shift to the left.
C) It will shift to the right.
D) It will slope downwards.
B
Economics
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If two duopolists can collude successfully, then both will
A) earn greater profits than if they did not collude. B) price at marginal cost. C) price below average total cost. D) lower their economic profits.
Economics
If a firm is a monopsonistic hirer of labor,
a. its marginal expense for labor is greater than the market wage. b. its marginal expense for labor is equal to the market wage. c. its marginal expense for labor is less than the market wage. d. it is a price taker in the labor market.
Economics