The average tax rate is:
A. change in taxes/change in taxable income.
B. total taxes/total taxable income.
C. the sum of the marginal tax rate and the rate of transfer payments.
D. the tax on incremental income less the tax on total income.
Answer: B
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Refer to the table below. What is the profit-maximizing quantity for Just Juice to produce at Plant 1?
Just Juice produces whole fruit juice that it sells in single bottles. Just Juice is a multi-plant firm with market power. The above table summarizes the total marginal cost of production at various output levels in Just Juice's two plants with the corresponding marginal revenue (dollars per bottle) and market demand (price per bottle).
A) 350
B) 530
C) 500
D) 425
If the price elasticity of supply equals zero, this implies that:
a. suppliers can easily change the quantity supplied of the product as the price of the product changes. b. the period under consideration is a very long-run time period. c. the supply curve is perfectly vertical. d. the percentage change in quantity supplied exceeds the percentage change in product price. e. the percentage change in quantity supplied equals the percentage change in product price.
An externality arises when a person engages in an activity that influences the well-being of
a. buyers in the market for that activity and yet neither pays nor receives any compensation for that effect. b. sellers in the market for that activity and yet neither pays nor receives any compensation for that effect. c. bystanders in the market for that activity and yet neither pays nor receives any compensation for that effect. d. Both (a) and (b) are correct.
A business is most likely to be characterized as a corporation if:
A. each owner is liable only to the extent of his or her own investment. B. it is legally treated as a person and owned by stockholders who are liable for the actions of the corporate "person" regardless of their investment. C. it has two or more owners, with each owner liable for every other owner's actions. D. it has only one owner.