A firm that sells a car for $30,000 gets producer surplus of $30,000.
Answer the following statement true (T) or false (F)
False
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In the above figure, new expectations of booming business conditions and a higher expected profit will
A) shift the demand for loanable funds curve leftward. B) shift the demand for loanable funds curve rightward. C) have no effect on the demand for loanable funds curve. D) make the demand for loanable funds curve become horizontal.
When marginal cost exceeds marginal revenue,
A. marginal profit < 0. B. the firm should increase output. C. marginal profit + marginal cost > marginal revenue. D. marginal cost < marginal revenue - marginal profit.
A monopolistically competitive firm is producing an output level at which marginal revenue is greater than marginal cost. This firm should __________ quantity and __________ price to increase profit or reduce losses
a. increase, increase b. increase; decrease c. decrease; increase d. decrease; decrease e. increase; not change
Consider two people, Sandy Smith, who earns $25,000 . and Gary Carver, who earns $50,000 . If the government has decided to tax everyone's first $25,000 at 20 percent and everyone's second $25,000 at 40 percent, then:
a. Gary and Sandy both pay taxes of the same percentage of total income. b. Gary and Sandy pay the same amount of taxes. c. Gary pays twice the tax amount Sandy pays. d. Gary pays three times the tax amount Sandy pays. e. Sandy does not pay taxes.