If the elasticity of supply for a good is greater than the government expected:
a. Consumers will bear more of the burden of the tax than the government expected.
b. Producers will bear more of the burden of the tax than the government expected.
c. The tax will raise less revenue than the government expected
d. Both a. and c. are true.
d
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If a perfectly competitive firm produces an output level at which price is less than marginal costs, then the firm should:
A. reduce output to earn greater profits or smaller losses. B. leave its output level unchanged provided it is covering its variable cost. C. expand output to earn greater profits or smaller losses. D. raise its price.
Under Roosevelt's definition, poverty has remained about the same since 1936
Indicate whether the statement is true or false
Pineapples and kumquats are substitute goods. Exceptional weather in Guatemala resulted in a bumper crop of pineapples. Ceteris paribus,
A. the price of both pineapples and kumquats will fall. B. the price of kumquats will fall and the price of pineapples will increase. C. the price of both pineapples and kumquats will increase. D. the price of kumquats will increase and the price of pineapples will fall.
With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. Its output quantity must be:
A. 200 units B. 400 units C. 800 units D. 1,600 units