Firms should use a resource up to a point where MRP = P
a. True
b. False
Indicate whether the statement is true or false
True
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If the inverse demand curve a monopoly faces is p = 100 - 2Q, MC is constant at 16, and the government imposes an $8 per unit specific tax on the monopoly, the deadweight loss due to both the monopoly and the tax is
A) $529. B) $1332. C) $1764. D) $441.
"Leaning against the wind" is exemplified by a
a. tax cut when there is a recession. b. decrease in the money supply when there is a recession. c. decrease in government expenditures when there is a recession. d. All of the above are correct.
Which of the following is consistent with a political and legal framework that discourages economic growth?
A. Agricultural prices that are allowed to vary according to market conditions B. A speedy approval process for new businesses C. The allocation of bank credit by the government rather than by markets D. Taxation and regulation that are not very burdensome
Table 21.2Output (units per day)0102030Total cost (dollars per day)$40$54$62$80The marginal cost per unit between 20 and 30 units of output in Table 21.2 is
A. $4.00. B. $1.80. C. $18.00. D. $1.60.