Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. To force this firm to produce the efficient level of output, the government should impose a tax of
A. $5.00 per car.
B. $10.00 per car.
C. $15.00 per car.
D. an amount that is indeterminate from this information.
Answer: B
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A country's indifference curve describes combinations of goods that:
a. a country can purchase. b. yield equal satisfaction to a country. c. yield satisfaction to a country. d. a country can produce.
The slope of the production possibilities frontier at a given point indicates ________.
a. the preferences of a country. b. a country's total gains from trade. c. a country's opportunity cost of production. d. a country's trade balance.
If a firm increases output when MR > MC, then:
A. profit will equal zero. B. profit will increase. C. profit will decrease. D. profit will remain the same.
The total of consumer plus producer surplus is largest at the market equilibrium.
Answer the following statement true (T) or false (F)