The tax revenue collected can be calculated by ______.
a. subtracting the amount of the tax from market price and adding surpluses
b. adding consumer and producer surpluses and dividing by market price
c. subtracting production expenses from market price
d. multiplying the amount of the tax times the quantity of the good sold
d. multiplying the amount of the tax times the quantity of the good sold
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________ occurs when a foreign firm sells its exports at a lower price than it costs to produce the goods
A) Dumping B) Comparative advantage C) Learning-by-doing D) A tariff
A pound of steak costs $10 in the U.S. and 56.25 riyals (the currency of Saudi Arabia) in Saudi Arabia. If the real exchange rate is 2/3, what is the nominal exchange rate? Show your work
Which of the following is true?
a. The monopolist's marginal revenue will always be less than the price because of its downward-sloping demand curve. b. In order to sell more output, the monopolist must accept a lower price on all units sold. c. The monopolist will receive additional revenue from the sale of an additional new unit but will receive less revenue on all of the units it was previously selling as well. d. All of these statements are true.
Recall the Application about the decrease in price of illegal drugs in the United States to answer the following question(s).Recall the Application. If it is not known whether the decrease in price of illegal drugs is primarily due to a change in supply, a change in demand, or equal changes in both, the equilibrium quantity of drugs:
A. will increase. B. will decrease. C. will not change. D. may or may not change.