What is one reason existing firms might lobby the government to increase regulation in their industry?
A) It increases entry and exit costs, thereby reducing producer surplus to existing firms.
B) It increases entry and exit costs, thereby potentially increasing producer surplus to existing firms.
C) It increases entry and exit costs, but has no impact on producer surplus.
D) Firms cannot be trusted to treat their customers fairly and ethically.
B
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Refer to Figure 6-12. Suppose the diagram shows the supply curves for a product in the short run and in the long run. Which supply curve represents supply in the short run and which curve represents supply in the long run?
A) Either SA or SB could represent supply in the long run; in the short run the supply curve must be a horizontal line. B) SA represents supply in the short run and SB represents supply in the long run. C) Either SA or SB could represent supply in the short run; in the long run the supply curve must be a vertical line. D) SB represents supply in the short run and SA represents supply in the long run.
Thomas Malthus argued that
A) Population grows at an arithmetic rate. B) Population growth would exceed the growth in the food supply. C) Production grows at a geometric rate. D) None of the above.