Any kind of social regulation raises the per unit cost of production of a good and hence leads to a loss of producer and consumer surplus
a. True
b. False
Indicate whether the statement is true or false
True
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Ramsey pricing avoids cross subsidy
Indicate whether the statement is true or false
Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset today, your inflation-adjusted capital gains would be zero due to inflation over the last eight years
The capital gains tax is 28 percent. If you sold the asset today your tax liability would be A) zero. B) $28,000. C) $8,400. D) cannot be determined without more information.
Graphically, a firm's total cost is equal to the area of the:
a. triangle formed under the demand curve. b. rectangle formed under the demand curve at a given price and quantity combination. c. rectangle formed under the average-total-cost curve at a given ATC and quantity combination. d. triangle formed by a line segment between the demand and average-total-cost curves. e. triangle formed by a line segment between the horizontal axis and the average-total-cost curves.
The decision rule for constrained optimization is to select the level for each activity at which
A. total benefit per dollar of total cost is equal across all activities. B. marginal benefit equals marginal cost for each activity. C. total benefit equals total cost for each activity. D. marginal benefit per dollar of marginal cost is equal across all activities.