Figure 11-3
In Figure 11-3, which line represents the change in the consumption schedule caused by a cut in the personal income tax as advocated by President George W. Bush in 2001?
a.
C1 in graph (a)
b.
C2 in graph (a)
c.
C1 in graph (b)
d.
C2 in graph (b)
d
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Suppose that each of 8,000 firms in a perfectly competitive industry produces 1,000 units of a good and maximizes profits when the price of the good is $10
If there is a permanent increase in demand, in the short run each firm produces ________ 1,000 units and in the long run the number of firms is ________ 8,000. A) more than; more than B) less than; more than C) less than; less than D) more than; less than E) exactly; more than
Regardless of the demand for its product, a monopolist will be able to earn positive economic profits
a. True b. False Indicate whether the statement is true or false
marketing services that add "time value" include:
a) transportation b) processing c) marketing d) storage e) all of the above
Refer to the figure below. If negotiation is impractical, the socially optimal level of production can be achieved by:
A. imposing a tax on paper equal to the external cost. B. subsidizing paper by the amount of the the external benefit. C. compensating those injured by the externality. D. banning production of paper.