For a firm, marginal revenue minus marginal cost is equal to
a. profit.
b. average total cost.
c. change in profit.
d. change in average revenue.
c
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Social insurance taxes are paid by corporations based on their profits
Indicate whether the statement is true or false
Consider a large open economy that has a positive current account balance. (a) Suppose the domestic government increases the tax rate on firm revenues
Draw a diagram to explain the effects on the world real interest rate, saving in each country, investment in each country, and the current account balance in each country in equilibrium. Explain your work. (b) In addition to the tax increase in part (a), suppose now that the foreign government increases lump-sum taxes on individuals. Draw a new diagram to incorporate the overall effects of both tax changes and explain the effects (from the initial equilibrium with neither tax change) on the world real interest rate, saving in each country, investment in each country, and the current account balance in both countries. Explain your work.
All of the following are typically considered procyclical variables except
A) the inflation rate. B) investment expenditures. C) the unemployment rate. D) expenditures on durable goods.
Refer to Scenario 5.9. The value to Torrid Texts of complete information is
A) $0.25 million. B) $0.5 million. C) $1 million. D) $14.75 million. E) $30 million.