A monopoly responds to a decrease in marginal cost by _____ price and _____ output.
a. increasing; increasing
b. decreasing; increasing
c. increasing; decreasing
d. decreasing; decreasing
b. decreasing; increasing
You might also like to view...
If real GDP per person is above the subsistence level then, according to classical growth theory,
A) the population will increase. B) the standard of living will continue to improve. C) the population will decrease. D) labor productivity will increase. E) more technological advances occur.
In Florida, sunscreen and sunglasses are vital items
If the tax on sellers of these items is doubled from 5.5 percent to 11 percent, who will pay most of the tax increase: the buyer or the seller? Will the tax increase halve the quantity of sunscreen and sunglasses bought?
If there are no excess reserves in the banking system and the Fed lowers the required reserve ratio, it follows that banks will now have __________, which they can use to extend loans and create new __________
A) positive excess reserves; checkable deposits B) negative excess reserves; currency C) positive excess reserves; currency D) more vault cash; checkable deposits E) none of the above
Answer the following statement true (T) or false (F)
1) The efficiency loss of a tax is the tax revenue collected by government minus the value of the public goods financed through the tax. 2) The greater the elasticity of demand and supply, the greater is the efficiency loss of a tax. 3) Economists agree that corporations always shift the corporate income tax to consumers by raising product prices. 4) Although state and local taxes are highly progressive, federal taxation is predominantly