If the price of the good measured on the horizontal axis is subject to volume discounts, then:
A. the budget line will get steeper as the consumer moves along it from left to right.
B. the budget line will get flatter as the consumer moves along it from left to right.
C. the indifference curve will get steeper as the consumer moves along it from left to right.
D. the indifference curve will get flatter as the consumer moves along it from left to right.
B. the budget line will get flatter as the consumer moves along it from left to right.
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If the state enacts the emission charge, find the associated cost savings to the firm, assuming the use of the old technology.
Consider the following abatement cost functions (TACO andMACO) for a firm using an old abatement (AO) technology: TACO = 1000 + 0.25(AO)2 MACO = 0.5(AO), where A isunits of abatement undertaken by the firm, and the cost values are in thousands of dollars. Further assume that the regulatory authority has set an abatement standard (AST) equal to 40 units for each firm and has proposed an emission charge implemented as a constant per unit tax (t) of $10 (i.e., MT = 10), where Total Tax = t(AST – Ai), and Ai is the existing abatement level.
According to the text, a government policy of promoting competition must
A) assure small businesses they won't fail because of below-cost pricing or other predatory practices by larger businesses. B) assure small businesses they won't fail under any circumstances. C) equate profit margins among competing suppliers. D) maintain a process rather than some state of affairs. E) work toward making sellers' demand curves completely elastic.
If corn products are found to cause cancer, then the most immediate effect will be that the
A. Supply curve for corn will shift left. B. Supply curve for corn will shift right. C. Demand curve for corn will shift left. D. None of the choices are correct.
For a given market demand curve, if the market clearing price increases, then the amount of producer surplus will
A) decrease. B) increase. C) become negative. D) none of the above due to insufficient information.