Exam 9: Properties and Applications of the Competitive Model

-The above figure shows supply and demand curves for milk.If the government passes a $2 per gallon specific tax,the loss in producer surplus will equal

If a market produces a level of output below the competitive equilibrium,then

Does a competitive long-run equilibrium require cost-minimization?

The deadweight loss associated with output less than the competitive level can be determined by

-The above figure shows supply and demand curves for apartment units in a large city.If the city government passes a law that establishes $450 per month as the legal maximum rent,consumer surplus will be

-The above figure shows the market for rice in Japan.SDₒmₑstᵢc represents the domestic supply curve,and Swₒᵣld represents the world supply curve.An import quota of 35 units would

-The above figure shows supply and demand curves for apartment units in a large city.If the city government passes a law that establishes $350 per month as the legal maximum rent,consumer surplus will be

In the long run,competitive firms MUST be profit maximizers because if they do not maximize profits,

-The above figure shows the market for rice in Japan.SDₒmₑstᵢc represents the domestic supply curve,and Swₒᵣld represents the world supply curve.The smallest tariff necessary to completely eliminate imported rice is

Deadweight loss occurs when

The services of real estate brokers are provided in a competitive market.If the state Board of Realtors enacts several requirements that limit the number of real estate brokers,which of the following is most likely to occur?

-The above figure shows supply and demand curves for milk.If the government passes a law that establishes $3 per month as the legal minimum per gallon price,consumer surplus will be

If a market produces a level of output that exceeds the competitive equilibrium output,then

-The above figure shows the market for rice in Japan.SDₒmₑstᵢc represents the domestic supply curve,and Swₒᵣld represents the world supply curve.If a $1 per unit tariff is imposed on imported rice,the quantity of imported rice will decrease by

-The above figure shows supply and demand curves for milk.If the government passes a $2 per gallon specific tax,the tax revenue is

Firms are ________ with an economic profit of zero,they will ________ in the industry because they ________ be better off in another industry.

Competitive firms earn zero profit in the long run when

The services of real estate brokers are provided in a competitive market.If the state Board of Realtors enacts several requirements that limit the number of real estate brokers,which of the following is most likely to occur?

Advocates of steel tariffs to protect American steel firms realize that when imposing such tariffs the gains of firms are outweighed by the losses to consumers.This implies that

Tariffs and quotas create a loss in social welfare because