When looking at this graph for the welfare effects of a subsidy, which area represents the cost of the subsidy to the government?
a. area a + b + c + d
b. area b + e + f + c + g
c. area f
d. area a + b – c
b. area b + e + f + c + g
Economics
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Which of the following is illegal under the Sherman Act? I. A competitor agrees with another competitor on the price at which the product will be sold. II
A manufacturer refuses to supply a retailer who does not accept the manufacturer's guidance on the price. A) only I B) only II C) both I and II D) neither I nor II
Economics
Newsgroup Markets
Visit one of the following newsgroups: (Newsgroups provide lists of messages on a particular topic. Google provides a searchable interface for these newsgroups.)
- rec.antiques.marketplace
- rec.audio.marketplace
- rec.music.makers.marketplace
Questions:
- Do participants in such lists receive gains from trade? How?
- Does the existence of internet newsgroups such as these allow some individuals to gain from trade that might not otherwise occur? Explain.
Economics