Refer to the graph below. The firm will earn maximum total profits if it produces and sells quantity:
A. 0A
B. 0B
C. 0C
D. 0K
C. 0C
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If a nation imposes a tariff on an imported product, then that nation will experience a(n)
A. decrease in the supply of, and an increase in the quantity demanded of, the product. B. increase in the quantity supplied of, and a decrease in the price of the product. C. decrease in demand and a decrease in the price of the product. D. decrease in quantity supplied and an increase in the price of the product.
The demand curve of a perfectly competitive firm is vertical
a. True b. False Indicate whether the statement is true or false
A Pigouvian tax corrects for
A. market congestion. B. market losses. C. inefficient sales. D. low market prices.
Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500th unit, and the cost to the marginal seller is $35 for the 500th unit. We know that
a. the equilibrium price of good x is somewhere between $35 and $40. b. the equilibrium quantity of good x exceeds 500 units. c. 500 units is not an efficient quantity of good x. d. All of the above are correct.