Tom produces commemorative t-shirts in a competitive market. If Tom decides to decrease his output, this will
a. increase his revenue, since the output decrease leads to a higher market price
b. increase his revenue, since Tom's competitors will also decrease their output, so that price rises to offset the drop in Tom's output.
c. decrease his revenue, since his output has decreased and the price remains the same.
d. decrease his revenue, since the price does not rise sufficiently when output drops to offset the drop in Tom's output.
c
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Discuss the advantages of using an income tax system such as the one discussed in this chapter, as opposed to a consumption tax.
What will be an ideal response?
Increase in business taxes will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
When actions are finely divisible marginal benefit is ______ marginal cost at an interior best choice.
A. greater than B. less than C. equal to D. greater than or equal to
Which of the following occurs when an employer refuses to hire a qualified individual due to the job applicant’s race, gender, or religion?
a. Discrimination b. Cognitive bias c. Affirmative action d. Racial profiling