In the above figure of a monopolistically competitive firm, in the long run after all industry adjustments have taken place, assuming that this firm's costs have not changed the firm will
A) produce more output at a higher price.
B) produce less output at a lower price.
C) produce the same quantity at the same price.
D) Any of the above are possible.
B
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In the DMP model
A) the market wage is equal to the marginal product of labor. B) the market wage is equal to the marginal rate of substitution of leisure for consumption. C) the wage is equal to the marginal rate of transformation. D) the wage is determined by bargaining between the firm and the worker.
Employing a fixed-weight index like the Consumer Price Index to adjust a person's salary in response to inflation will overcompensate this person because doing so will allow this person to
A) buy the same bundle of goods as he did before the inflation. B) achieve a higher level of utility than he did before the inflation. C) achieve the same level of utility as before the inflation. D) buy more of all goods.
For a person earning $75,000, the average tax rate is:
A. 10%
B. 15%
C. 19%
D. 17%
Spending longstanding & can be also a tax policy/decreasing; increasing
What will be an ideal response?