10. Which of the following best explains Adam Smith's proposition that a competitive market free of coercion, fraud and monopoly leads people to serve the public good in spite of their proclivity towards self-interest? O b) In a market system, free from government coercion, people are free to pursue their self-interest which will inevitably serve the public good. O a) Adam Smith argued that in a situation free of coercion, fraud, and monopoly, the only way for individuals to advance their self-interest is to provide a better service or good, and this serves the public interest. O c) A competitive market serves the public good because without monopolies people have more choices and lower prices and as a result will spend more money, which grows the economy. O d) In a competitive market the absence of monopolies, coercion and fraud leads people to be more public-minded, focus less on self-interest, and serve the public good.

1. Suppose the government is considering a ban on smoking in restaurants in Tobaccoville. There are 1 million residents in Tobaccoville, and each resident would benefit by $200 from the smoking ban. However, there are two large tobacco companies in Tobaccoville, and the ban would cost each company $5 million. What are the proposed policy's total costs and total benefits? Why would the proposed smoking ban likely fail?   2. To ensure safety and efficacy, the Food and Drug Administration regulates the medicines that pharmacies are allowed to sell in the US. Sometimes this means that a company must test a drug for years before receiving FDA approval and reaching the market. We can easily identify the "winners" in this system as those who are protected from unsafe drugs that might otherwise harm them. Who are the more "anonymous losers" who suffer due to the strict FDA medical regulations?

5. Indicate whether each of the following statements is true or false, and explain your answer.A. If a monoplist is producing a level of output at which demand is inelastic, the firm is not maximizing profits and increasing output will decrease total revenu.B. When a monopolist maximizes profits, the price is greater than the marginal cost of producing the output. This means that consumers are willing to pay more for additional units of the product than these additional units of the produce. Thus, the monopolist should produce and sell addional units of output.C.A monopolistically competitive firm produces a level of output at which price equals $80, marginal revenue equals $40, average total cost equals $100, marginal cost equals $40 , and average fixed cost equals $10. To maximize profit, the firm should produce a smaller output and sell it at a higher price.D. In a monopolistically competitive market, a firm has market power because it produces a differentiated product. This means…

answer this one 3. Now, suppose that in addition to the home country opening up to free trade, the foreign country has alsoopened up to free trade. As a result, both firms sell their product in both markets.A) Find each firms’ overall output, market price in each market, and each firms’ overall profitB) Explain what effect free trade has (relative to no trade) on the firms and consumers                                                                                                                                                                                                                                  Suppose a firm operates as a monopoly in the domestic (home) market for a product. The demand for itsproduct is given by the inverse demand function: P = 120 −QD. The company’s costs are: T C = 20Q+ 200and MC = $20.A) Find the firm’s profit-maximizing output and price as a monopoly.B) Find the firm’s total profit in the monopoly market.Suppose the home country open up to free trade…

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An example of a government corporation is the Select one: O a. Securities and Exchange Commission. O b. U.S. Mint. C. Government Printing Office. d. U.S. Postal Service. Department of Education.

6. Consider a good with a production process with fixed costs and constant marginal costs. Which of the following statements are correct? a) If marganal costs are zero the good is non-excludable. b) If marginal costs are zero the good is non-rival. c) A Pareto-efficient market equilibrium implies that the production process cannot cover its costs. d) A Pareto-efficient market equilibrium requires a price of zero.

See pictures below... So, given the summary table of the two different market structures, you can infer that, in general, the price is lower under a _________, and the quantity is lower under a ______________.

1. Explain in detail a) Economic externalities arise because of the enactment of tariffs. Is there a way to account for such externalities? Can this be related  with Coase’s and Pigou’s work. b) Are there any similarities and differences between Tariffs and Quotas?