Suppose that an ad valorem tax of 10% is imposed on producers of butter. The bread market supply is Qs = 10 + P and the bread market demand is Qd = 220-P. What is the producers' tax burden?
A) Producers' tax burden is $8.
B) Producers' tax burden is $10
C) Producers' tax burden is $4.
D) Producers' tax burden is $5.
D
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One opportunity cost associated with going to college is
A) purchasing text books. B) paying tuition. C) giving up employment possibilities while in college. D) paying for room, board, and other living expenses.
A surplus exists in the market for Barbie dolls at the prevailing price. The surplus will be eliminated by a price: a. increase, decreasing the supply and increasing the demand
b. decrease, decreasing the supply and increasing the demand. c. decrease, increasing the quantity supplied and increasing the quantity demanded. d. decrease, decreasing the quantity supplied and increasing the quantity demanded.
Any long-lasting tool that people use to produce goods and services is called
a. a product b. machinery c. capital d. equipment e. labor assistance
(Appendix) In the production function Q = 10L1/2K1/2 calculate the marginal product equations of both inputs.
What will be an ideal response?