Refer to Figure 13-13. What is the area that represents the firm's profit?
A) profit = 0 B) P3baP2 C) P4edP2 D) P4eaP1
C
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The income effect means that at a high enough wage rate labor supply curve has a
A) positive slope because an increase in the wage rate increases income. B) positive slope because an increase in income increases the demand for leisure. C) negative slope because an increase in income increases the demand for leisure. D) negative slope because an increase in the wage rate increases hours worked to earn more income.
Refer to Figure 2-5. If the economy is currently producing at point X, what is the opportunity cost of moving to point W?
A) 19 million tons of steel B) 5 million tons of paper C) 9 million tons of paper D) 3 million tons of steel
If the government's goal is to generate a certain amount of tax revenue, a specific tax and an ad valorem tax on a monopoly have the same impact on social welfare
Indicate whether the statement is true or false
A common characteristic in oligopolistic markets is
a. consideration of rivals' reactions. b. standardized products. c. high profits. d. unused capacity.