Quotas often:
A) lead to deadweight losses resulting from a wedge between the price of sellers and
that of demanders.
B) are necessary to increase the quantity of the goods in the market.
C) result in few incentives to engage in illegal activities.
D) create more efficient market outcomes.
A) lead to deadweight losses resulting from a wedge between the price of sellers and
that of demanders.
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Refer to Figure 2-9. What is the opportunity cost of producing 1 popsicle in Greenland?
A) 2/3 of a snow cone B) 5/6 of a snow cone C) 1 1/5 snow cones D) 240 snow cones
If the long-run supply curve is horizontal, we know that this is
A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) a situation in which some input prices change as firms enter and exit the industry.