Based on these graphs, if there was no supply-side effect to a tax cut, prices would ______.
a. remain at PL1
b. move to PL2
c. move to PL3
d. remain at PL2
c. move to PL3
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When the production of a worker is relatively easily observable, the firm can pay a piece-rate
Indicate whether the statement is true or false
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. If the market maker bought and sold at the equilibrium price, what is his profit
a. $1 b. $2.5 c. $3 d. $0
In the long-run, a perfectly competitive firm will leave the market if it is unable to cover all of its fixed costs
a. True b. False Indicate whether the statement is true or false
Suppose that a firm is currently producing 500 units of output. At this level of output, AVC is $1 per unit, and TFC is $500. What is the firm's TC?
A. $1,000 B. $501 C. $1,500 D. $500