The Figure Given Below Represents an Imperfectly Competitive Resource Market

question 45

Multiple Choice

The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1

-On account of a massive construction boom in a country, the demand for iron ore increases substantially. This causes iron ore prices to escalate. Producers increase iron ore mining considerably in the short run, in spite of knowing that this will adversely affect future availability of ore. Which of the following is most similar to the scenario described above?

• A)Corn producers hoard their supplies in order to induce a price hike.
• B)Petroleum manufacturers increase extraction in response to sky-rocketing fuel prices.
• C)The government of a country makes aforestation mandatory for lumber firms.
• D)Impressive revenue generation induces the government of a country to impose additional fuel surcharge.
• E)To discourage smoking, the government of a country increases sales tax on cigarettes.

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Definitions:

Counterfeit Goods

Illegally produced replicas of real products, designed to deceive consumers by mimicking the appearance of genuine items without authorization.

License

In the context of intellectual property, a contract permitting the use of a trademark, copyright, patent, or trade secret for certain purposes. In the context of real property, a revocable right or privilege of a person to come on another person’s land.

Patented Fuel-Injection System

A legally protected innovation in the method or device for injecting fuel into an internal combustion engine.

Trademark Infringement

The unauthorized use of a trademark or service mark on competing or related goods and services, potentially confusing consumers.