Econ
At the nash equilibrium how much profit will firm A earn?
$80,000
Which firms have a dominant strategy
A but not B
The incidence of a tax falls more heavily on
All of the above are correct
The buyers will bear a higher share of the tax burden than sellers if the demand is
D2 and the supply is S2
If an oligopoly does not cooperate and each firm chooses its own quantity, the industry will produce a quantity of output that is__ the competitive level and __the monopoly level
Less than, more than
Which firm's dominant strategy is to sell?
Neither firm A nor firm B
Which of the following would increase quantity supplied, decrease quantity demanded, and increase the price that consumers pay?
The imposition of a binding price floor
Which of the following would increase quantity supplied, increase quantity demanded, and decrease the price that consumers pay?
The repeal of a tax levied on producers
Suppose a tax is imposed on bananas. In which of the following cases will the tax cause the equilibrium quantity of bananas to shrink by the largest amount.
The response of buyers and sellers to a change in the price of bananas is strong.
When this game reaches a nash equilbrium , the value of trade flow benifts will be
United States $65 b and Farland $75 b
A $1 per unit tax levied on consumers of a good is equivalent
a $1 per unit tax levied on producers of the good
When a government imposes a binding price floor, it causes
a surplus of the good to develop
A price ceiling will be binding only if it is set
below the equilibrium price
Suppose that the demand for light bulbs is inelastic, and the supply of light bulbs is elastic. A tax of $2 per bulb levied on light bulbs will increase the price paid by buyers of light bulbs by
between $1 and $2
Suppose the demand for macaroni is inelastic, the supply of macaroni is elastic, the demand for cigs is inelastic and the supply of cigs elastic. If a tax were levied on the sellers of both these commodities, we would expect that the burden of
both taxes would fall more heavily on the buyers than the sellers
If the two companies make their pricing decisions independently, then it is likely that QRS will
charge a low price regardless of whether ABC charges a high price or low price
An agreement among firms regarding price and/or production levels is called
collusion
If the government levies a $500 tax per car on sellers of cars, then the price received by sellers of cars would
decrease by less than $500
A tax on the sellers of coffee will increase the price of coffee paid by buyers,
decrease the effective price of coffee received by sellers, and decrease the equilibrium quantity of coffee
If the government removes a tax on a good, then the price paid by buyers
decrease, and the price price received by sellers will increase
A tax imposed on the sellers of a good will lower the
effective price received by sellers and lower the equilibrium quantity
The prisoners' Dilemma is a two-person game illustrating that
even if cooperation is better than the nash equilibrium, each person might have an incentive not to cooperate
If the government removes a tax on a good, then the quantity of the good sold will
increase
If the government levies a 1,000 tax per boat on sellers of boats, then the price paid by buyers of boats would
increase by less than 1,000
In a market with a binding price ceiling, an increase in the ceiling will__the quantity supplied,__the quantity demand, and reduce the__.
increase, decrease, shortage
If a 10 cent per pound tax is increased to 15 cents, the governments tax revenue
increases by less than 50 percent and may even decline
If a 2 cent per egg tax is increased to 3 cents, the deadweight loss of the tax
increases by more than 50 percent
As the number of firms in an oligopoly market
increases, the market approaches the competitive market outcome
An increase in the size of a tax is most likely to increase tax revenue in a market with
inelastic demand and inelastic supply
A tax burden falls more heavily on the side of the market that
is more inelastic
The tax burden will fall most heavily on sellers of the good when the demand curve
is relatively flat and the supply cure is relatively steep
When a tax is placed on the sellers of a product, buyers pay
more, and sellers receive less than they did before the tax
If the two companies make their pricing decisions independently, then it is likely that ABC will
none of the above are correct
The anti-trust laws aim to
prevent firms from acting in ways that reduce competition
A tax imposed on the sellers of a good will raise the
price paid by buyers and lower the equilibrium quantity
If a nonbonding price ceiling is imposed on a market then the
quantity sold in the market will stay the same
A tax imposed on the sellers of a good will
raise the price buyers pay and lower the effective price sellers receive
If a tax imposed on a market with inelastic supply and elastic demand, then
sellers will bear most of the burden of the tax
If a policymaker wants to raise revenue betaking goods while minimizing the deadweight loss, he should look for goods with s__ elasticities of demand and __ elasticities of supply.
small, small
Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective,
smaller quantity of the good is bought and sold
When a good is taxed, the burden of the tax falls mainly on consumers if
supply is elastic and demand is inelastic
A minimum wage that is set above a market's equilibrium wage will result in an excess
supply of labor, that is unemployment
Suppose sellers of perfume are required to send $1.00 to the government for every bottle of perfume they sell. Further, suppose this tax causes the price paid by buyers of perfume to rise by $.60 bottle. Which of the following statements is correct?
the effective price received by sellers is $.40 per bottle less than it was before the tax.
If a price ceiling is not binding, then
the equilibrium price is below the price ceiling
A tax on a good has a deadweight loss if
the reduction in consumer and producer surplus is greater than the tax revenue
If a price ceiling is not binding, then
there will be no effect on the market price or quantity sold