Suppose the only professional hockey team within 500 miles is the Salt Lake City Slappers team. If the State of Utah imposes a profits tax on sports teams, the Slappers will
a. raise ticket prices
b. lower ticket prices to boost sales
c. maintain ticket prices and suffer a loss in profits
d. expand the number of home hockey games
e. reduce the number of home hockey games
C
You might also like to view...
The profit maximizing rule P = MC applies to:
A. both perfectly competitive firms and imperfectly competitive firms. B. all firms. C. perfectly competitive firms only. D. monopolists only.
Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________ and the equilibrium quantity ________
A) rises; increases B) does not change; does not change C) falls; increases D) rises; decreases E) falls; decreases
In the short-run for a purely competitive market, a manufacturer will stop production when:
a. the total revenue is less than total costs b. the contribution to fixed costs is zero or less c. the price is greater than AVC d. operating at a loss e. a and b
The Celler-Kefauver Act of 1950:
A. outlawed price-fixing. B. amended the Sherman Act. C. amended the Clayton Act. D. created the Civil Aeronautics Board (CAB).