Figure 17-12
If the country illustrated in is initially trading without restrictions at a world price of $1.00, the government revenue from a tariff of $0.50 per unit is represented by area
a.
c
b.
e + g
c.
i + e + f
d.
d + e
e.
e
e
Economics
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A cartel might fail because
A) it does not control enough of the output in a market to raise prices enough. B) there is an incentive for members to cheat. C) too many firms leave the cartel, causing the cartel price to fall. D) All of the above.
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The long-run supply curve in a constant-cost, perfectly competitive industry is
A) perfectly inelastic. B) upward sloping. C) downward sloping. D) perfectly elastic.
Economics