The elasticities of the supply and demand curves in the market for cigarettes affect how much a tax distorts that market
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The long run is distinguished from the short run because only in the long run
A) output prices can vary. B) factor of production prices can vary. C) the quantities of all factors of production can be varied. D) the firm no longer maximizes its profit.
Overall, U. S. citizens and foreign-born residents embrace change that promises overall growth. This is evidenced by which of the following?
(a) Innovation (b) The growth of new industries and the demise of others (c) Population migration from one part of the U.S. to another (d) All of the above
A deadweight loss occurs in a
A) monopoly. B) perfectly competitive market. C) market in which the market clearing price of a good equals the marginal cost of producing it. D) market in which the market clearing price of a good is below the marginal cost of producing it.
Adopting a uniform menu across all sites provides the McDonald's Corporation __________ by spreading the cost of menu development over a large output
a. economies of scale b. diminishing returns c. constant returns to scale d. rising marginal product e. more flexibility