If the government implements a tax on the general public to pay for street lighting in one neighborhood,
A) the tax redistributes well-being and the benevolent social planner is not pleased.
B) the tax redistributes well-being, but the benevolent social planner is pleased.
C) the tax reduces well being and the benevolent social planner is not pleased.
D) the tax has no bearing on well-being and the benevolent social planner is indifferent.
A
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Advertising costs and other selling costs are
A) efficient. B) fixed costs. C) variable costs. D) marginal costs. E) considered as part of demand because they affect the demand for the good.
When two companies that produce the same product merge, it is called a
A) conglomerate merger. B) diagonal merger. C) horizontal merger. D) vertical merger.
Holding the total output constant, the rate at which one input X may be substituted for another input Y in a production process is:
a. the slope of the isoquant curve b. the marginal rate of technical substitution (MRTS) c. equal to MPx/MPy d. all of the above e. none of the above
If the government overcorrected in a situation of external costs a. More than the efficient amount of the good would end up being produced. b. Less than the efficient amount of the good would end up being produced. c. It would result in a welfare cost in that market
d. Both b and c are would result.