Return to the market for cigarettes from the previous question. What per-unit tax could the government levy to eliminate the deadweight loss from the behavioral bias?
a. 0
b. 1
c. 50
d. 100
c
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The best contract a principal can make with an agent gives the agent all profit after paying the principal a fixed fee
Indicate whether the statement is true or false
Economic forecasting has proven no better than the flipping of coins
Indicate whether the statement is true or false
When a competitive firm maximizes profit, it will hire workers up to the point where the
a. marginal product of labor is equal to the product price. b. marginal product of labor is equal to the wage. c. value of the marginal product of labor is equal to the product price. d. value of the marginal product of labor is equal to the wage.
Which of the following is not a barrier to entry into a monopoly market?
A.) The exclusive right to produce a good. B.) The existence of substitute goods. C.) Legal action against new firms that enter the market. D.) A patent on important technology.