A tax on the buyers of cereal will increase the price of cereal paid by buyers,
a. decrease the effective price of cereal received by sellers, and decrease the equilibrium quantity of cereal.
b. decrease the effective price of cereal received by sellers, and increase the equilibrium quantity of cereal.
c. increase the effective price of cereal received by sellers, and decrease the equilibrium quantity of cereal.
d. increase the effective price of cereal received by sellers, and increase the equilibrium quantity of cereal.
a
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Suppose that Marlen Fisher has legal protection against anyone producing and selling a fishing lure identical to his unique-action "MarFish" lure, whatever the competitor might name the lure. This legal protection is most likely to be a:
A. trademark. B. restraining order. C. patent. D. copyright.
Economies of scale will create a barrier to entry in an oligopoly when
A) a firm's minimum efficient scale occurs where long-run average total costs are constant. B) the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a large fraction of total industry sales. C) the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a small fraction of total industry sales. D) the industry's four-firm concentration ratio is less than 40 percent.