Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $18
A) there will be a surplus; as a result, the price will fall to $7.
B) Marko's will produce four shirts.
C) producer surplus from the first shirt is $18.
D) producer surplus will equal $22.
D
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The size of the underground economy would tend to decrease if the government of a country
A) increased income tax rates. B) increased business taxes. C) decreased government regulations on businesses. D) made over-the-counter drugs illegal.
For a firm hiring a resource in a perfectly competitive resource market, its demand curve for the resource is its
a. marginal product curve b. marginal revenue product curve c. marginal resource cost curve d. marginal revenue curve e. total revenue curve
Supporters of advertising claim that it:
a. increases the variety of products. b. attacks established brand loyalties. c. allows new firms to compete. d. all of these.
Which of the following would produce a rightward shift in the short-run aggregate supply curve? a. An increase in consumption spending. b. A decrease in investment
c. A decrease in government spending. d. A decrease in net exports. e. None of the above.