In perfectly competitive markets with identical firms, the burden of a tax is shared by consumers and producers in the short run so long as market demand is not perfectly elastic.
Answer the following statement true (T) or false (F)
True
Rationale: The short run market supply curve is upward sloping but not perfectly inelastic -- which means consumer price rises and producer price falls under a tax.
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Research in history and economic history shows that before 1880, significant federal participation in the markets of the American economy occurred
Indicate whether the statement is true or false
A movement along the demand curve for automobiles is caused by a change in:
A. the price of automobiles. B. the price of gasoline. C. the price of steel. D. consumers' incomes.
In the long run, which of the following is likely to be a variable cost?
A. Wage costs but not costs for equipment. B. Rent, wages, and all other costs are variable in the long run. C. Factory rental but not wage costs. D. Interest payments on borrowed funds but not utilities.
Typically a mix of informational and persuasive advertising is used for
A. credence goods. B. search goods. C. credible goods. D. experience goods.