Taxable income rises by $1,500 and taxes rise by $435. What is the marginal tax rate?
A) 4 percent
B) 29 percent
C) 10 percent
D) 30 percent
E) 25 percent
B
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A permanent increase in demand ______ economic profit in the short run and some firms will ____ in the long run
A. does not change; exit the market B. increases; enter the market C. increases; raise their price D. does not change; advertise their good
If a producer is not able to expand its plant capacity immediately, it is
A) operating in the long run. B) operating in the short run. C) losing money. D) bankrupt.
A firm enters into a consent decree to avoid an even greater legal setback. If the terms of the consent decree effectively double the firm's fixed costs, then
a. marginal cost more than doubles b. marginal cost doubles c. marginal cost remains unchanged d. average total cost remains unchanged e. average variable cost doubles
A firm will continue to produce in the short run even though economic profits are negative as long as
A) the amount of the loss is no greater than the amount of fixed cost. B) MC = MR. C) it earned positive economic profits last year. D) it has fixed obligations to pay.