Which of the following models results in the greatest deadweight loss assuming a fixed number of firms with identical costs and a given demand curve?

Marginal product is

A) the change in total output from using an additional unit of one variable input, holding other inputs constant. B) the change in total output from using an additional unit of all variable inputs. C) the total output divided by the number of units of the variable input. D) the change in total output divided by the number of units of the variable input, holding constant all other inputs.

In 1990 the UN placed trade sanctions on Iraqi oil. In 1996, Iraq was allowed limited export of oil to make war reparations. What was the predicted effect of the two events on equilibrium price and quantity of oil?

A. The price rose initially, then fell (failing to regain its former losses); quantity rose, then fell B. The price fell initially, then rose (failing to return to its former low level); quantity fell and then rose C. The price rose initially, then fell (failing to regain its former losses); quantity fell and then rose D. The price fell initially, then rose (failing to return to its former low level); quantity rose and then fell