Suppose the demand curve for movie tickets has unitary price elasticity and the supply curve is perfectly price elastic. If 3 million tickets are currently sold at a price of $5, approximately how much tax revenue could the government generate from a $1 specific tax?
A) $18 million
B) $3 million
C) $2.7 million
D) $1.5 million
C
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If a firm shuts down in the short run, it will
a. incur losses equal to its fixed costs b. produce at the output level where MC = MR c. reduce its losses to zero d. do this because P > AVC e. have total revenue greater than total fixed costs
The actual rate of unemployment will be greater than the natural rate of unemployment when
a. the actual output is less than the economy's potential output. b. the actual output is greater than the economy's potential output. c. the actual output is equal to the economy's potential output. d. the inflation rate has been relatively constant for several years.
The International Water Management Institute estimates that clean water could be provided to everyone on earth for an outlay of $______ a year beyond current spending on water projects.
Fill in the blank(s) with the appropriate word(s).
Possible reasons for X-inefficiency include the following, except:
A. Managers may have other goals besides maximizing profits B. Workers may be poorly motivated or poorly supervised C. Costs of materials may be rising due to tight supply conditions D. The firm may be lethargic due to the absence of competition