Questions from Microeconomics

Q: Evaluate: “Society does not need laws outlawing monopolization and monopoly

Evaluate: “Society does not need laws outlawing monopolization and monopoly. Inevitably, monopoly causes its own self-destruction since its high profit is the lure for other firms or entrepreneurs to...

Q: Assume that the comparative-cost ratios of two products—baby

Assume that the comparative-cost ratios of two products—baby formula and tuna fish—are as follows in the nations of Canswicki and Tunata: Canswicki: 1 can baby formula ≡ 2 cans tuna fish Tunata: 1 can...

Q: Speculate as to why we see unnecessary occupational licensing only in some

Speculate as to why we see unnecessary occupational licensing only in some industries but not others. Consider both costs and benefits, who gets them, and how hard it would be to organize opposition t...

Q: How do the concepts of accounting profit and economic profit differ?

How do the concepts of accounting profit and economic profit differ? Why is economic profit smaller than accounting profit? What are the three basic sources of economic profit? Classify each of the fo...

Q: Various cultures have come up with their own methods to limit catch

Various cultures have come up with their own methods to limit catch size and prevent fishery collapse. In old Hawaii, certain fishing grounds near shore could be used only by certain individuals. And...

Q: Given the inelasticity of cigarette demand, discuss an excise tax on

Given the inelasticity of cigarette demand, discuss an excise tax on cigarettes in terms of efficiency loss and tax incidence.

Q: True or False. The MB = MC level of immigration is

True or False. The MB = MC level of immigration is likely to be achieved if we simply let in every person who wishes to immigrate to the United States.

Q: In view of the problems involved in regulating natural monopolies, compare

In view of the problems involved in regulating natural monopolies, compare socially optimal (marginal-cost) pricing and fair-return pricing by referring again to Figure 12.9. Assuming that a governmen...

Q: What are the effects of farm subsidies such as those of the

What are the effects of farm subsidies such as those of the United States and the European Union on (a) domestic-agricultural prices, (b) world agricultural prices, and (c) the international allocatio...

Q: How do government statisticians determine the poverty rate? How could the

How do government statisticians determine the poverty rate? How could the poverty rate fall while the number of people in poverty rises? Which group in each of the following pairs has the higher pover...