Producer surplus measures the difference between total revenues and fixed cost
a. True
b. False
B
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All of the following, except one, would shift the demand curve for pizza makers to the right. Which is the exception?
a. a decrease in the wage rate of pizza makers b. an increase in the demand for pizza c. a decrease in the price of pizza ovens d. an increase in the number of pizza parlors e. an improvement in the technology of making pizza
Oligopoly and monopolistic competition can be described as industries where firms
a. have high barriers to entry b. produce identical goods c. are located near each other d. produce close substitutes e. aspire to become perfect competitors
Which of the following is true about competitive equilibria in environments where the conditions of the first welfare theorem are satisfied?
A. We have to be able to represent the demand side of the economy by a representative consumer. B. Consumer surplus is smaller than what would be estimated if it were measured on the market demand curve when goods are normal. C. Producer surplus is zero in the long run when all firms share the same technology. D. (a) and (b) are true. E. (b) and (c) are true. F. (a) and (c) are true. G. All of the above. H. None of the above.
Taxing in labor markets creates more excess burden than taxing in commodity markets.
A. True B. False C. Uncertain