QUESTION 9 Exhibit 17.1 b $0.15 Marginal social cost Dollars per kilowatt-hour 0.10 - Marginal private cost 75 Millions of kilowatt- hours of electricity per month Refer to Exhibit 17.1, which shows a market for electricity. If technology is fixed, the discrepancy between the market output and the efficient level of output is eliminated by O a. subsidizing production by $0.05 per kilowatt hour O b. subsidizing production of the good by $0.10 kilowatt hours. O c. imposing a tax of $0.05 per kilowatt hour on the utility. O d. letting the utility operate freely. O e. using a quota system to restrict production to 75 million kilowatt hours. QUESTION 10 Exhibit 17.3 Prices ($) 12/ MS 40 50 Quantity Refer to Exhibit 17.3, which shows equilibrium in a market in the presence of externality in an economy. The total social gain from producing the socially efficient output rather than the private equilibrium output is shown by the area O a. abdi O b. bed. O c. bod. O d. bode. O e. acdf.QUESTION 11 Which of the following acts of Congress declared restraint of trade illegal and declared any attempt at monopolizing unlawful? O a. the Sherman Antitrust Act O b. the Clayton-Celler Act O c. the Clayton Act O d. the Celler-Kefauver Anti-Merger Act O e. the Wheeler-Lea Act QUESTION 12 Suppose the market for taxis in Mexico City is a natural monopoly. Which of the following is likely to result from the regulation of taxis in Mexico City? O a. The price of taxi rides will decrease. O b. The supply of taxis will increase. O c. Taxi owners will have greater monopoly power. O d. The price of taxi rides will increase. O e. The income of taxi owners will increase. QUESTION 13 How did U.S. producers react to competition from foreign imports between 1958 and 1988? O a. U.S. producers increased exports. O b. U.S. producers lobbied for more government intervention. O c. U.S. producers exited the industry. O d. U.S. producers raised prices.c O e. U.S. producers sought protection from foreign competitors through trade barriers.QUESTION 14 Exhibit 15.1 $4.00- Ic b A Demand Dollars per trip 2.50- 1.50- h Long-run 1.25- 9 average cost 0.50- e Long-run `Marginal revenue marginal cost 100 200 210 Trips per month (millions) Refer to Exhibit 15.1, which shows the cost and revenue curves for a natural monopolist-the operator of a subway system. If regulators could set the price at $1.50 per trip, the subway would sell trips per month. O a. 200 million O b. 100 million O c. 250 million O d. 150 million O e. 210 millionQUESTION 15 Exhibit 15.1 C $4.00- b A Demand Dollars per trip 2.50- 1.50- h Long-run g 1.25- average cost B 0.50- e Long-run Marginal revenue marginal cost O 100 200 210 Trips per month (millions) Refer to Exhibit 15.1, which shows the cost and revenue curves for a natural monopolist-the operator of a subway system At the efficient output rate, the efficient quantity is O a. 150 million. O b. 200 million. O c. 100 million. O d. 250 million. O e. 210 million