Imagine the government would like to increase revenues by taxing the people. If they place a unit tax on certain goods, this is equivalent to
a. c and e
b. shifting the demand curve to the right
c. reducing everyone's income by the amount of the unit tax
d. raising the fixed costs of producers
e. shifting the supply curve to the left
E
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A corporate executive makes the following statement – "The company must keep hiring more workers up to the point where the marginal productivity of the last worker we hire is zero. This way we can maximize the total productivity of the firm"
Critically evaluate this statement. Also comment on whether this is the correct objective function for the firm.
A profit-maximizing monopoly will choose advertising expenditures so the ratio of advertising expenditures to total revenue is equal to the ratio of advertising elasticity to price elasticity (in absolute value)
Indicate whether the statement is true or false
Three firms agree to operate as a monopoly and charge the monopoly price of $40 for their product and (jointly) produce the monopoly quantity of 50,000 units. If the competitive price for the product is $35, under the Clayton Act these three firms face treble damages of ________.
A) $1,000,000 B) $250,000 C) $3,000,000 D) $750,0
The monopolist is a
A) price taker who tries to find the profit-maximizing rate of output. B) price taker who tries to find the profit-maximizing price. C) price searcher who tries to find the profit-maximizing price-output combination. D) price searcher who tries to find the rate of output that maximizes price.