What will happen to the land rents accruing to your local merchants if firms selling their products on the Internet are not required to collect state sales taxes on their customers' purchases?
The land rents accruing to your local merchants will fall, because proximity to customers will become
less important.
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A perfectly competitive firm maximizes its profits using what rule?
a. P = ATC b. MR = ATC c. Q = MC d. P = MC e. MR = AVC
When national output declines, the economy is said to be in
A. an inflation. B. an expansion. C. a deflation. D. a recession.
A major difference between monopoly and monopolistic competition is
A. The number of firms in the market. B. One has a downward-sloping demand curve, and the other does not. C. One maximizes profits by setting MR equal to MC, and the other does not. D. One type of firm has market power, and the other does not.
If consumers are insensitive to price changes for a particular good, their demand for the good is said to be __________.
Fill in the blank(s) with the appropriate word(s).