In the above figure, the price paid by the buyer before the tax is ________ per compact disc, and the price paid by the buyer after the tax is ________ per compact disc
A) $20; $20
B) $20; $30
C) $30; $20
D) $30; $30
B
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If the slope of the rays from the origin to the total variable cost curve declines along the curve, it implies:
a. the average variable cost is falling. b. the marginal cost is falling. c. the average variable cost is rising. d. the marginal cost is rising.
Most prophecies of the imminent exhaustion of many natural resources have not come true because
a. such resources are generally available in infinite quantities. b. rising prices for resources have stimulated supply and encouraged innovation. c. the demand for most natural resources has fallen as income levels have increased. d. government price floors have prevented resource exhaustion.
Which of the following is an example of a positive externality?
A) something obtainable at a zero price B) a lower crime rate for a community in which residents receive more education C) increased purchases of landscaping services by a homeowner that boost a neighbor's property value D) a discount for consumers buying in large quantity
Decreasing returns to scale may occur as increasing the amount of inputs used
A) increases specialization. B) always increases the amount of output produced. C) may cause coordination difficulties. D) increases efficiency.