Suppose the grocery store market in Kansas City is perfectly competitive. Then one store buys all the others and becomes a single-price monopoly. The figure above shows the relevant demand and cost curves
When the market is a monopoly, the price of a pound of steak is A) $4.
B) $8.
C) $12.
D) $20.
E) $2.
C
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The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. As the price of snacks rises, Bobby's utility
A) stays the same. B) increases. C) decreases. D) might change, but there is not enough information to determine.
What condition(s) must exist to make trade among nations mutually beneficial?
a. Nations must have the same opportunity costs of production. b. Nations must not impose tariffs or quotas. c. Nations must be equally efficient at producing a traded good. d. Nations must have an absolute advantage in the production of a good. e. Nations must have a comparative advantage in the production of a good.