In the dominant firm model as evidenced by the production of iPods by Apple, the entrance of the competitive fringe firms has what effect on the dominant firm?
A) Its price is lower, but it produces more output.
B) Its price is lower, and it produces less output.
C) Its price is the same, but it produces less output.
D) Its price is higher, but it produces more output.
A
Economics
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The above figure shows supply and demand curves for milk. Suppose that the government passes a $2 per gallon subsidy. The deadweight loss resulting from this policy will be
A) j. B) f + g. C) b + c + f + g. D) c + g.
Economics
Wealth is redistributed from creditors to debtors when inflation was expected to be
a. high and it turns out to be high. b. low and it turns out to be low. c. low and it turns out to be high. d. high and it turns out to be low.
Economics