In the above figure, point B is called
A. the maximum efficient scale.
B. the point of diminishing marginal product.
C. the minimum efficient scale.
D. the planning horizon.
Answer: C
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The percentage of additional income that will have to be paid in tax is an individual's _____
a. marginal tax rate b. average tax rate c. proportional tax rate d. flat tax rate
If a perfectly competitive firm is producing at an output at which marginal cost exceeds marginal revenue
A) price will be at the profit maximizing level. B) sales will be at the profit maximizing level. C) the firm should expand production. D) the firm should reduce production.
Accelerated depreciation laws may increase firms' investment in equipment because
a. machines will wear out more rapidly. b. profits will be increased. c. the rental rate on capital will be lowered. d. the price of machines will fall.
In the national income accounts, new investment goods are considered
A. intermediate goods, and therefore, not counted. B. final goods. C. subtractions from final output. D. depreciated goods.