According to the text, the annual cost to the United States from its anti-dumping policies is equivalent to a deadweight loss of _____ uniform tariff applied across all imports.

Carolyn spends her income on popular magazines and music CDs. If the price of a CD is four times the price of a magazine and if Carolyn is maximizing her utility, she buys

A) four times as many CDs as magazines. B) both goods until the marginal utility of the last magazine purchased is four times the marginal utility of the last CD purchased. C) both goods until the marginal utility of the last CD purchased is four times the marginal utility of the last magazine purchased. D) four times as many magazines as CDs.

The product-variety externality arises in monopolistically competitive markets because

a. firms produce with excess capacity. b. firms try to differentiate their products. c. firms would like to produce homogeneous products, but the large number of firms prohibits it. d. entry and exit is restricted.