The government imposing a minimum wage is an example of an attempt to:
A. correct a market failure.
B. redistribute surplus in a market.
C. encourage the consumption of inferior goods.
D. discourage the consumption of inferior goods.
B. redistribute surplus in a market.
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Refer to the supply and demand graph of Product X below. What would happen if the government taxed the producers of this product because it has negative externalities in production?
A. Supply would increase
B. Demand would decrease
C. Supply would decrease
D. Price would increase
Refer to the below table. If firm A chooses its dominant strategy and firm B chooses a strategy that is not dominant, then the payoffs will be
Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit from following either an international strategy or a national strategy.
A. $3M for both firms.
B. $17M for both firms.
C. $15 for firm A and $5 for firm B.
D. $5 for firm A and $15 for firm B.