If hot dogs are an inferior good, an increase in income will result in
A, an increase in the quantity demanded for hot dogs
B. an increase in the demand for hot dogs
C. a decrease in the quantity demanded for hot dogs
D. a decrease in the demand for hot dogs
E. no change in the quantity demanded for hot dogs
D. a decrease in the demand for hot dogs
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For firms, dividends are not deductible. They are, however, taxed preferentially at the individual level.
A. True B. False C. Uncertain
A price floor is
a. a maximum price above which the good cannot be legally bought or sold b. the lowest price buyers are willing to pay for a good. c. a minimum price below which the good cannot be legally bought or sold. d. a minimum price above which the good cannot be legally bought or sold.
If a firm is a price taker, then it can
a. sell below the market price and increase its economic profit b. sell all it wants at the market price c. sell above the market price and increase its economic profit d. supply the entire market e. choose its own price
If substantial up-front investments in advertising campaigns become essential to a successful market entry, the market is most likely to be:
A. a perfectly competitive market. B. a monopoly. C. a monopolistically competitive market. D. an oligopoly.