One problem with the effectiveness of Pigovian taxes is:
A. identifying those who are affected by the externality.
B. knowing whether to impose it on the consumer or producer.
C. knowing what the value of the tax should be.
D. none of these are problems.
Answer: C
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The long-run equilibrium of a monopolistic competitor differs from the long-run equilibrium of a perfect competitor in that
A) the monopolistic competitor makes economic profits. B) the monopolistic competitor sets price equal to marginal cost. C) the monopolistic competitor produces at the minimum point of its average total cost curve. D) the monopolistic competitor charges a price that exceeds marginal cost.
Which economist believes all profits are derived from the exploitation of workers?
A. Frank Knight B. Joseph Schumpeter C. Karl Marx D. John Maynard Keynes
Businesses have two types of cost: fixed and variable.
Answer the following statement true (T) or false (F)
Producer surplus increases as the price of a good decreases.
Answer the following statement true (T) or false (F)