Excise taxes are distortionary taxes.
A. True
B. False
C. Uncertain
A. True
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A price ceiling refers to ________
A) the lowest price that a producer is willing to accept for a good B) the highest price that a consumer is willing to pay for a good C) the lower limit on the price of a good D) the upper limit on the price of a good
The short run is
A) usually 3 - 6 months. B) dependent on the characteristics of the industry. C) when a firm has to decide whether or not to exit. D) identical to the long run for most firms.
"If it were not for the law of diminishing marginal returns, the world's wheat could be grown in a flower pot." Explain
One major barrier to entry under pure monopoly arises from:
A. diseconomies of scale. B. the availability of close substitutes for a product. C. the price taking ability of the firm. D. ownership of essential resources.