Of the $3 per pizza tax illustrated in the above figure, the
A) consumers pay $2 of the $3 per pizza tax.
B) sellers pay $1 of the $3 per pizza tax.
C) government collects $120 thousand in revenue from the pizza tax.
D) All of the above answers are correct.
D
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Answer the following statement(s) true (T) or false (F)
1. If the consumer chooses not to purchase potatoes, then the marginal value of potatoes must be less than or equal to the relative price of potatoes. 2. The steeper the indifference curve, the greater the marginal value of a good. 3. If a person is willing to trade one good for another, their new basket after the trade must lie on a lower indifference curve than their original basket. 4. Along a convex indifference curve, the marginal value of a good rises as the quantity of the good rises. 5. When using the composite good convention all other goods are measured in terms of dollars.
The implementation of new technology can be quick throughout the world if
(a) patent rights are leased and purchased. (b) unions are strong. (c) economies are closed to foreign competition. (d) tariffs are placed on those imported goods and services benefiting from the technological advancements in the rest of the world.
Vertical integration can
A) lower transaction costs due to lower costs of writing and enforcing contracts. B) increase management costs and complexity. C) reduce problems between owners and managers. D) All of the above.
The oligopolistic situation in which a company's objective is to maximize revenue subject to a minimum profit requirement is usually referred to as
A) the aggregate model. B) the Baumol model. C) the aggressive model. D) the Marshall model.