Horizontal equity means that equally situated individuals should be taxed equally.
Answer the following statement true (T) or false (F)
True
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Economists are skeptical about the degree to which predatory pricing is used because
a. "price wars" are rarely observed in actual markets. b. when used as a warning to potential rivals, predation has minimal value. c. buy-outs are less costly than predation and have no offsetting disadvantages. d. firms can easily counter predation by "laying low" or borrowing funds.
The burden of a tax falls entirely on buyers if ________
A) the price elasticity of demand is zero (perfectly inelastic) B) the price elasticity of demand is greater than 1 C) the income elasticity of demand is high D) the price elasticity of supply is unitary elastic
Suppose the estimated fixed cost of Christmas trees business is $7,000 and not sunk. The estimated variable cost for each tree is $20
According to the forecast, the market price for Christmas trees is $25 each and the owner could sell 1000 trees at most each year. In the long run, the owner A) should shut down. B) should keep operating. C) should sell less. D) None of the above.
Suppose Cassie's Candles is a profit-maximizing competitive firm. Cassie sells hand-made candles for $10 each. She will pay an hourly wage of $20 so long as the marginal productivity of a worker equals or exceeds two candles per hour
a. True b. False Indicate whether the statement is true or false