Domestic demand is given by P = 100 - 2Q and domestic supply is given by P = 10 + 3Q. If the world price is 40 and the country imposes a tariff of 6 per unit, then it will generate tariff revenue of...

a.

108

b.

120.

c.

90.

d.

240.

Clear my choice

A single-price monopolist faces a demand curve of P = a - bQ. Its marginal revenue curve is given by...

a.

MR = a - 0.5bQ.

b.

MR = 2a - bQ.

c.

MR = 2a - 2bQ.

d.

MR = a - 2bQ.

Clear my choice

An industry with two firms face a market demand curve given by P = 100 - Q. Each firm has MC = AC = 40. If they form a cartel and divide the resulting output equally, their individual profit is....

a.

550

b.

900

c.

450

d.

750

Clear my choice