New firms will likely enter a monopolistically competitive market when price exceeds
a. marginal revenue.
b. average revenue.
c. marginal cost.
d. average total cost.
d
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Assume that a 50 percent gasoline tax led to a large increase in its price and only a small decrease in the quantity of gasoline demanded. Economic analysis would lead one to conclude that
A) gasoline should not be taxed because the benefits are uncertain. B) the benefits of taxing gasoline is a normative issue. Economic analysis can be used to contribute to discussion of this issue but cannot decide it. C) gasoline should be taxed because the benefits of the tax would exceed the costs. D) gasoline should not be taxed on ethical grounds since ethical benefits and costs can't be measured.
Which of the following is most likely to be a fixed cost for farmer McDonald? Fertilizer
A. Gasoline B. Fertilizer C. Insurance D. Seed
The concept of improving work methods in the home is known as:
a. Satisficing b. Optimization c. Work Simplification d. Re-inventing
Which of the following would be most likely to cause an outward shift of the demand curve for electricity?
a. a decrease in the price of electricity b. an increase in the price of air conditioners c. an increase in the price of heating oil d. a decrease in the price of natural gas