Consider the market for heart transplants. The demand for a heart transplant is perfectly inelastic and the supply curve is upward sloping
If a $1,000 tax per transplant tax is imposed on buyers (the recipients), how will the tax be divided between the buyer and seller? A) The sellers will pay the entire tax.
B) The buyers will pay the entire tax.
C) The tax will be evenly divided between the sellers and buyers.
D) More information is needed to determine how the tax is split.
B
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If autonomous investment decreases by $60 billion, equilibrium real GDP demanded will
What will be an ideal response?
Marginal factor cost is
A) the change in total costs due to a one-unit change in the quantity of the good produced. B) the change in total costs due to a one-unit increase in the variable input. C) the change in the price of an input when an additional unit of the input is hired. D) the marginal cost of changing the rate of production in the long run.
The price system has
A. prices fixed by the government. B. prices fixed by the seller. C. prices fixed by the producer. D. voluntary exchange.
Using the figure as a guide, which of the following is FALSE with respect to profit maximization and the monopolist? 
A. Profits are the positive difference between total revenues and total costs. B. A monopolist (like any other firm) will select an output rate at which marginal revenue is equal to marginal cost, at the intersection of the marginal revenue curve and the marginal cost curve. C. The monopolist will produce quantity Qm and charge a price of Pm. D. When compared to a competitive situation, consumers pay a higher price to the monopolist, and consequently are forced to purchase more of a product as price varies directly with quantity demanded.