The figure above shows the market for coffee. If the government pays the coffee producers a subsidy and production increases to 30 million pounds per day, the market is
A) efficient because the marginal social benefit from the last pound of coffee exceeds its marginal social cost.
B) efficient because the total social benefit from coffee exceed the total social cost.
C) inefficient because the marginal social benefit from the last pound of coffee exceeds its marginal social cost.
D) inefficient because the marginal social cost of the last pound of coffee exceeds its marginal social benefit.
D
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In a sequential contestable market game
A) a small number of firms can behave like firms in perfect competition. B) the outcome is always a monopoly equilibrium. C) the dominant firm always makes a monopoly profit, while other firms make zero economic profits. D) a firm that enters the market first is protected from potential entrants by natural barriers.
________ of unemployment during ________ make it easier for workers to ________ wages
A) High levels; a recession; negotiate higher B) Low levels; an expansion; negotiate higher C) Low levels; a recession; accept lower D) High levels; an expansion; accept lower