What do monopolistic competition, pure monopoly, and perfect competition have in common?
a. free entry
b. long-run economic profits
c. differentiated product
d. price taking
e. the rule of profit maximization
E
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A rain barrel is a container that captures and stores rainwater for landscape and garden use during dry periods. Rain barrels provide an external benefit to the community through water conservation. What can the government do to equate the equilibrium quantity of rain barrels and the socially optimal quantity of rain barrels?
a. impose a tax on rain barrels that is equal to the per-unit externality b. offer a subsidy on rain barrels that is equal to the per-unit externality c. encourage homeowners to bargain with rain barrel producers d. nothing
Suppose the market wage for cashiers increases from $7 per hour to $9 per hour. As a result, Pat, who is a cashier, now works five more hours per week. On the other hand Chris, who is also a cashier, now works five fewer hours per week. Pat's behavior illustrates the ________ effect of a wage increase.
A. substitution B. income C. demand D. supply
The In the news article titled "Gas Prices Jump in Matthew's Wake" suggests gasoline prices increased a s a result of damage caused by Hurricane Matthew. When the availability of gasoline decreases as a result of this damage the supply curve shifts to the left, causing
A. Consumers pay lower prices as they decide to drive less. B. The price of gasoline to move up along the market supply curve C. The price of gasoline to move up along the market demand curve. D. A surplus to exist at the original equilibrium price.
Estate and gift taxes account for a very small portion of total tax revenues collected by the federal government because taxes are levied only on large estates.
Answer the following statement true (T) or false (F)