Bennie's Top Factory produces 1,000 tops per day for a total daily revenue of $2,000 . Bennie's total costs would rise by $2 if it produced the 1,001st top. Because marginal revenue and price are equal and constant,
a. profit would rise by $2 if Bennie produced one additional top
b. profit would fall by $2 if Bennie produced one additional top
c. profit would not change if Bennie produced one additional top
d. profit will fall by some unknown amount if Bennie produced one additional top
e. the total cost curve must have shifted to the left
C
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The above figure shows the U.S. market for wheat. With no international trade, consumer surplus is equal to ________ and producer surplus is equal to ________
A) area A; area B + area C + area E + area F B) area A + area B + area C; area E + area F C) area E + area F; area A D) area B + area C + area D; area E + area F E) area A + area B + area C + area D; area E + area F
The adverse selection problem in international investment means
A) that those seeking funds for the riskiest projects are those most actively seeking the funds. B) that the recipients of the funds may use the funds for other than the approved projects. C) that government officials may demand higher than the usual amount of bribes. D) those in the highest levels of government are the most dishonest.
Suppose a tax on sellers has been imposed as shown in the graph. Once the tax is in place, the buyers experience:
A. a decrease in demand.
B. an increase in demand.
C. a decrease in quantity demanded.
D. an increase in quantity demanded.
About how much of the tax is paid by consumers in the form of higher prices?
A. 20 cents
B. 50 cents
C. $1
D. $4.85