When there are only two firms in a market, a Stackelburg leader will choose the monopoly output
Indicate whether the statement is true or false
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To finance medical care, the federal government raises the tax per pack paid by sellers of cigarettes. Other things being equal, the price of cigarettes rises because of a(n):
A. upward movement along the supply curve for cigarettes. B. rightward shift of the supply curve for cigarettes. C. upward movement along the demand curve for cigarettes. D. leftward shift of the supply curve for cigarettes.
On a bar graph comparing a firm's economic profit with its accounting profit, it will always be TRUE that
A. opportunity costs will be missing from the column depicting accounting profit. B. total revenue will be greater in the column depicting accounting profit. C. explicit costs will be greater in the column representing accounting profit. D. explicit costs will be greater in the column representing economic profit.
How do you calculate consumer’s surplus? What happens to consumer’s surplus when the price of a commodity rises?
What will be an ideal response?
An important assumption in the theory of public choice is that
A) individuals will act within the political process to maximize their individual well-being. B) individuals will act within the political process to maximize their collective well-being. C) individuals will only operate outside the political process when their well-being is involved. D) scarcity does not exist in the government sector.