A proportional tax is a tax whose rate increases as the tax base widens
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to the above payoff matrix for the profits (in $ millions) of two firms (A and B) making a decision to advertise or not. Which of the following is the outcome of the dominant strategy without cooperation?
A) Both firm A and firm B choose not to advertise. B) Both firm A and firm B choose to advertise. C) Firm A chooses to advertise while firm B chooses not to advertise. D) Firm A chooses not to advertise while firm B chooses to advertise.
In the long run, a profit-maximizing monopolistically competitive firm sells at a price that is:
A. equal to average total cost. B. equal to marginal cost. C. below average total cost D. the same as in perfect competition.
Which of the following will cause a movement upward along a supply curve?
a. Increases in raw-material costs. b. Increases in labor costs. c. Increases in the cost of machinery. d. Increases in the market price of a good, other things being equal.
If a perfectly competitive firm faces a price below its average total cost but above the shutdown point, it should stay open
a. True b. False Indicate whether the statement is true or false