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Author Question: The equivalent variation is always less than the consumer's income Indicate whether the statement ... (Read 13 times)

hbsimmons88

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The equivalent variation is always less than the consumer's income
 
  Indicate whether the statement is true or false

Question 2

Mergers harm society.
 
  A) True. Firms merge to avoid antitrust laws and increase their prices.
  B) Maybe. It depends on whether the effect on prices is larger from reducing competition or increasing efficiency.
  C) False. Firms gain economies of scale and pass the price savings on to their customers.
  D) True. Total surplus is reduced when firms merge.



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Harbringer

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Answer to Question 1

True . The amount a person will pay to prevent a price change (EV) cannot exceed their available income.

Answer to Question 2

B




hbsimmons88

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Reply 2 on: Jul 1, 2018
Wow, this really help


ghepp

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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