If Harun’s taxes are $20,000 when he earns $100,000 and $15,000 when he earns $80,000, then
A. Harun faces a progressive tax.
B. Harun faces a regressive tax.
C. Harun faces a proportional tax.
D. Harun faces a falling marginal tax rates.
Answer: A
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If the elasticity measure equals 1.0, then the demand is
A) elastic. B) unit elastic. C) inelastic. D) infinitely elastic.
The law of diminishing returns occurs because
A) the marginal product of an additional worker is greater than the marginal product of the previous worker. B) the marginal product of a variable input, such as labor, depends in part on the amount of fixed inputs, such as capital. C) total production decreases as more of the variable inputs are used. D) adding more and more workers leads to a decrease in the quantity of capital.
A monopolist maximizes profit at the quantity where its total revenue curve equals total cost
a. True b. False
Name some of the barriers to entry that can be created by a competitive firm to protect profits?