Suppose sellers of perfume are required to send $1.00 to the government for every bottle of perfume they sell. Further, suppose this tax causes the price paid by buyers of perfume to rise by $0.60 per bottle. Which of the following statements is correct?
a. The effective price received by sellers is $0.40 per bottle less than it was before the tax.
b. Sixty percent of the burden of the tax falls on sellers.
c. This tax causes the demand curve for perfume to shift downward by $1.00 at each quantity of perfume.
d. All of the above are correct.
a
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Unlike perfectly competitive firms, monopolists can control
a. how much of the good to produce b. what inputs to use in production c. its plant size d. the price charged per unit of output e. the quality of inputs used in production
Capital gains are
A. The amount of corporate profit paid out for each share of stock. B. An increase in the market value of an asset. C. Profits used for investment in new plants and equipment. D. The only motive for purchasing stock.
When a good is not excludable but is rival in consumption the:
A. good is likely a private good. B. free rider problem may arise. C. good is likely a common resource. D. tragedy of the commons may arise.
Marshall Field's and Stern's department stores were good examples of low-cost producers operating in perfect competition.
Answer the following statement true (T) or false (F)