The contestable market model is the oligopoly model which results in
A. the greatest efficiency.
B. the highest profits.
C. the greatest inefficiency.
D. the greatest deadweight loss.
Answer: A
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All of the following are part of the "state health insurance marketplaces" provision of the Patient Protection and Affordable Care Act (ACA) except
A) small businesses with fewer than 50 employees are exempt from being required to participate in the program. B) the marketplaces offer health insurance policies that meet certain specified requirements. C) each state is required to establish an Affordable Insurance Exchange. D) low-income individuals are eligible for tax credits to offset the costs of buying health insurance.
A cellphone maker sells 6,000 units per month at $600 each. The firm is investigating whether a price cut to $500 is warranted. The firm’s marginal cost of production of each phone is a constant $400 per unit. To maintain profits at their current level, quantity sold must increase to at least
A. 8,000 B. 10,000 C. 12,000 D. 15,000
Constant returns to scale indicate that a firm is experiencing:
a. per unit costs of production that are decreasing as the scale of output expands. b. per unit costs of production that remain stable as the scale of output expands. c. per unit costs of production that are increasing as the scale of output expands d. an increasing marginal product.
The individual income tax, the inheritance tax, and the head tax are all examples of direct taxes
a. True b. False Indicate whether the statement is true or false