Which of following would most likely cause a firm to shut down?
a. the ATC curve moves further above P
b. the MC curve moves below P
c. the AVC curve moves above P
d. the ATC curve moves below P
c. the AVC curve moves above P
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If the marginal value of a third soda is $1.50 to Jackie, then
a. Jackie would be willing to pay no more than $4.50 for three sodas. b. Jackie places a total value of less than $4.50 on three sodas. c. Jackie would pay no more than $1.50 for an additional soda when she has already consumed 2 sodas. d. Jackie would pay no more than $1.50 for any soda.
If government was not allowed to make interpersonal comparisons of utility, what effect would this have on how we tax people? a. We could not tax at all. b. We could not justify taxing the rich more than the poor. c. We would tax the rich more than the poor. d. Whatever tax government collects would have to be voluntarily given by the people taxed
e. We could continue taxing the way we do, but it would be less efficient.
Lowincomesville is a poor town. The mayor has decided to impose a law to cut all rental rates on apartments in half and to fix them at this level. Will this help the poor? Why or why not? Be sure to distinguish between the short run and the long run
When is the profit a firm earns equal to the producer surplus? Explain
What will be an ideal response?