All of the following lead to a difference in income EXCEPT
A. the age-earnings cycle.
B. sales tax.
C. marginal productivity.
D. discrimination.
Answer: B
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Explain the distinction between investment and capital.
What will be an ideal response?
Suppose a monopoly firm has an annual demand function of Qd = 20,000 - 250P, annual variable costs of VC = 16Q + 0.002Q2 and marginal cost of MC = 16 + 0.004Q, where Q is the annual quantity of output. In addition, the firm has an avoidable fixed cost of $25,000 per year. If this firm maximizes its profit, what is the value of the consumer surplus in the market?
A. $121,000 B. $60,500 C. $136,125 D. $0
Examples of monopolistically competitive markets include the markets for
a. restaurants and furniture. b. wheat and corn. c. postage stamps and wooden pencils. d. All of the above are correct.
Demand is said to be perfectly inelastic when:
A. the demand curve is horizontal. B. the elasticity of demand is infinite. C. the elasticity of demand is zero. D. consumers are highly responsive to change in the price of a good.