Author Question: To evaluate the potential impact of introducing the hybrid Prius auto into the U.S. market, Toyota ... (Read 82 times)

Pineappleeh · **on:** Jul 1, 2018

To evaluate the potential impact of introducing the hybrid Prius auto into the U.S. market, Toyota Motor Corporation would use:

A) positive economic analysis.
B) normative economic analysis.
C) negative economic analysis.
D) forensic analysis.

Question 2

Suppose a firm has market power and faces a downward sloping demand curve for its product, and its marginal cost curve is upward sloping. If the firm reduces its price, then:

A) consumer and producer surplus must increase.
B) consumer surplus increases, producer surplus may increase or decrease.
C) consumer surplus increases, producer surplus must decline.
D) consumer and producer surplus must decline.