Corrective taxes are typically advocated to correct for the effects of
a. positive externalities.
b. negative externalities.
c. patents.
d. All of the above are correct.
b
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Fill in the blank: Your textbook authors wrote, "A law that restricts competitors ________ competition."
A) preserves B) restricts C) promotes D) repairs
Business cycles are
A) irregular, with some having two recessions and no expansion. B) predictable, with a recession following a trough. C) unpredictable, but always have two phases and two turning points. D) unpredictable, and don't always have two phases and two turning points.
Economic profit is ________
A) included in the firm's total opportunity cost B) equal to normal profit minus total opportunity cost C) equal to total revenue minus marginal cost D) equal to total revenue minus total opportunity cost
To be able to engage in profit-maximizing price searching, a monopoly firm must be able to
A) prevent the entry of other firms into the market for its product. B) induce the entry of other firms into the market for its product. C) avoid earning negative economic profits in the short run. D) always earn zero economic profits.