As a result of a tariff on imports, consumers in the importing country
a. purchase more domestically produced goods and fewer foreign goods, resulting in the consumption of fewer total goods than without the tariff
b. purchase more domestically produced goods and fewer foreign goods, resulting in the consumption of more total goods than without the tariff
c. purchase more domestically produced goods and more foreign goods, resulting in the consumption of fewer total goods than without the tariff
d. purchase fewer domestically produced goods and fewer foreign goods, resulting in the consumption of more total goods than without the tariff
e. cease importing any goods at all
A
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If all consumers are uninformed about the quality of a product
A) firms can increase product by selling the same product under a different name at a different price. B) firms will not be able to price discriminate. C) firms will price discriminate. D) firms will increase profits by charging different prices for the same product.
The above figure shows a payoff matrix for two firms, A and B, that must choose between a high-price strategy and a low-price strategy. Both firms setting a high price is not a Nash equilibrium because
A) setting a high price is the dominant strategy for each firm. B) neither firm can improve its payoff by setting a low price given that the other firm is setting a high price. C) there is no dominant strategy for either firm. D) both firms can improve their payoff by setting a low price given that the other firm is setting a high price.