A firm using a two-part tariff faces a tradeoff because
A) any increase in consumer surplus must be offset by a decrease in producer surplus.
B) the only way to increase the fixed-fee portion of the price is to lower the per-unit portion of the price.
C) the only way to increase total revenue is to lower per-unit profit.
D) the smaller the variation between the parts of the price, the greater the deadweight loss generated by the pricing scheme.
B
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If the market price falls below a firm's minimum average total cost, the firm should:
A. definitely stop production. B. definitely continue to operate at a loss. C. consider how to minimize its losses. D. pay only fixed costs.
By definition, government purchases and taxes are zero for a closed economy
a. True b. False Indicate whether the statement is true or false
In 2010, the combined expenditures of federal, state, and local governments in the United States were approximately 40 percent of gross domestic product (GDP). Approximately what percentage of GDP were government expenditures in 1930?
What will be an ideal response?
Refer to the information provided in Figure 33.1 below to answer the question(s) that follow.
Figure 33.1Refer to Figure 33.1. Canada has ________ advantage in the production of soybeans and ________ advantage in the production of alfalfa.
A. a comparative; an absolute B. a comparative; neither a comparative nor absolute C. an absolute; a comparative D. neither a comparative nor absolute; neither a comparative nor absolute