Because the demand for a perfectly competitive firm's product is perfectly elastic, marginal revenue is equal to
A) one.
B) zero.
C) the price of the product.
D) negative one.
C
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If a firm is currently in short-run equilibrium earning a profit, what impact will a lump-sum tax have on its production decision?
A) The firm will decrease output to earn a higher profit. B) The firm will increase output but earn a lower profit. C) The firm will not change output but earn a lower profit. D) The firm will not change output and earn a higher profit.
While GDP includes what is spent on environmental protection, healthcare, and education, it does not include _________ levels of environmental cleanliness, health, and learning.
a. actual b. historical c. future d. planned
Which of the following statements is correct?
a. Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and decrease the price of the good produced. b. Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and increase the price of the good produced. c. Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and decrease the price of the good produced. d. Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and increase the price of the good produced.
Refer to the following graph.
This set of cost curves is:
A. wrong because the total cost and variable cost curves are reversed. B. wrong because the total cost and variable cost curves are actually the average total cost and average variable cost curves. C. wrong because the fixed cost curve is drawn incorrectly. D. correct.