Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and St represents the after-tax supply curve, then the revenues that the government collects from imposing this tax is represented
on this graph by A) OAEG.
B) OBCG.
C) BAEC.
D) CEF.
C
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When a city licenses only 3 taxi firms to serve the market, the city has created a
A) cartel. B) legal monopoly. C) monopolistically competitive market. D) legal oligopoly. E) natural oligopoly.
Refer to the above figure. At demand curve D2, price equals ________ and economic rent equals ________
A) OF; KHG B) OF; FHGO C) OE; EKGO D) OE; KHG
Activists believe that
A) monetary policy should not be used to smooth out the business cycle. B) fiscal policy should not be used to smooth out the business cycle. C) the frequent use of fiscal or monetary policy is called for to smooth out the business cycle. D) rules should be established for the conduct of both monetary and fiscal policy.
Refer to Table 8.2. If Sherry produces one pair of earrings, her total variable costs are A) $50. B) $100. C) $150. D) indeterminate from this information.