Refer to Scenario 10.2. Suppose that in addition to the tax, a business license is required to stay in business. The license costs $1000. What is the profit maximizing level of output?
A) 0
B) 90
C) 95
D) 100
E) none of the above
B
You might also like to view...
In Figure 4-18, there would be a shortage of T-shirts if the price were
A. $10 and the market price will rise. B. $8 and the market will tend toward equilibrium. C. below $8 and the shortage persists. D. between $8 and $6 and the shortage will get larger.
Absolute advantage is based on opportunity cost
a. True b. False
Think birth rate and growth in GDP per capita. A major reason that China adopted a one- child-per-family policy was that
a. it had to comply with United Nations standards to qualify for economic aid b. its per capita income would increase if the population growth moderated c. people were migrating to urban centers and there was insufficient housing for them d. resources could be diverted to military: a simple case of guns and butter e. it chose the big-push development strategy, which includes family planning
A Turkish firm exchanges lira (Turkish currency) for dollars. It then uses these dollars to purchase computers from the U.S. These actions decrease U.S. net capital outflow and increase U.S. net exports
a. True b. False Indicate whether the statement is true or false