Most of the burden of a luxury tax falls on the middle class workers who produce luxury goods rather than on the rich who buy them
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Mexico and Japan. What is the cost of producing 1 bushel of food in Mexico?
a. 3 hours of labor.
b. 1/2 bolt of cloth.
c. 1/3 bushel of imported Japanese food.
d. 1/4 bolt of imported Japanese cloth.
Monopolistically competitive firms constantly develop new products in an effort to
A) make the demand for their product more elastic. B) increase the demand for their product. C) increase the marginal cost of their product. D) None of the above are correct.
Price-cap regulation not only motivates cost control, it can also motivate socially desirable pricing
Indicate whether the statement is true or false
When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,
A. firm is a single-price monopoly B. firm is well protected from competition by a legal barrier C. the firm is a natural monopoly D. there are close substitutes for the good the firm produces