« previous next »

Author Question: Refer to the figure above. How many chairs does Lithasia import when the government imposes a tariff ... (Read 86 times)

vicotolentino

  • Hero Member
  • *****
  • Posts: 552
on: Jun 29, 2018
Refer to the figure above. How many chairs does Lithasia import when the government imposes a tariff of 1 per unit?
 
  A) 10 units
  B) 20 units
  C) 30 units
  D) 40 units

Question 2

A monopoly, unlike a perfect competitor, has total control in its market because it is the single producer. Why, then, must a single-price monopoly decrease its price if it wants to increase its output?
 
  What will be an ideal response?


ju

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

Because the monopoly does control the market, the monopoly sets the price at the maximum level that sells all the output the monopoly produces. This maximum price is determined from the demand for the product. The downward sloping market demand curve shows that the only way to increase the quantity consumers will buy is to lower the price. As a result, when a monopoly wants to produce more output, demanders will not buy the additional output at the initial price. As the downward sloping demand curve indicates, in order to sell the extra production, the monopolist must lower its price.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

The anterior pituitary is sometimes called the master gland because it secretes many hormones that r The anterior pituitary is sometimes called the master gland because it secretes many hormones that r
Pneumothorax. Figure illustrates how puncture of thoracic wall and tearing of pleural membrane allow Pneumothorax. Figure illustrates how puncture of thoracic wall and tearing of pleural membrane allow
Bronchoscopy. Figure illustrates physician using a bronchoscope to inspect the patient’s bronchial t Bronchoscopy. Figure illustrates physician using a bronchoscope to inspect the patient’s bronchial t
Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages
Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages
Frequency distribution of phenotypes from the possible offspring in Figure 5.7. Height of the offspr Frequency distribution of phenotypes from the possible offspring in Figure 5.7. Height of the offspr
Video: Membrane transport proteins - pores, gated channels and pumps

For a complete list of videos, visit our video library