When a tax is imposed on buyers, consumer surplus and producer surplus both decrease
a. True
b. False
Indicate whether the statement is true or false
True
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What is the relationship between marginal product and average product?
What will be an ideal response?
A favorable supply shock shifts the production function curve ________ and the labor demand curve ________
A) upward, upward B) upward, downward C) downward, upward D) downward, downward
Accounting costs and economic costs differ because
A. Economic costs include explicit costs and accounting costs do not. B. Accounting costs include implicit costs and economic costs do not. C. Accounting costs include explicit costs and economic costs do not. D. Economic costs include implicit costs and accounting costs do not.
Fixed cost is:
A. the cost of producing one more unit of capital, for example, machinery. B. any cost that does not change when the firm changes its output. C. average cost multiplied by the firm's output. D. usually zero in the short run.