In the short run where total variable cost is _________ at a(n) _________ rate, marginal cost is positive and decreasing.
A) increasing; increasing
B) increasing; decreasing
C) decreasing; increasing
D) decreasing; decreasing
B) increasing; decreasing
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In the single-polluter case, suppose a firm faces an emission charge implemented as a marginal tax (MT) of 12 and that its MAC = 0.8A. Based on this information, the firm
a. is better off paying the tax at abatement levels below 15 units b. should abate pollution for all abatement levels up to 15 units c. is better off paying the tax as long as the abatement level is 1.5 units or less d. none of the above
When contestable markets exist,
a. it must be an oligopoly b. the firms set high prices and earn economic profits c. the threat of new firms entering keeps prices low d. the government must take steps to regulate the firms e. laissez-faire can lead to greater market concentration
All of the nation's banks were closed in the first week of March, in the year
A. 1930. B. 1931. C. 1932. D. 1933.
How is the market for capital affected by higher prices?
a. More owners will supply capital. b. Fewer owners will supply capital. c. The supply will remain the same. d. The price will increase demand.