When the government levies a tax on a corporation,
a. all the burden of the tax ultimately falls on the corporation's owners.
b. the corporation is more like a tax collector than a taxpayer.
c. output must increase to compensate for reduced profits.
d. less deadweight loss will occur since corporations are entities and not people who respond to incentives.
b
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A common solution to monopoly in European countries is public ownership
a. True b. False Indicate whether the statement is true or false
Which of the following would be expected if the tariff on foreign-produced automobiles were increased?
What will be an ideal response?
Which of the following fiscal policy changes would be the most expansionary?
A. A $20 billion tax cut and $20 billion increase in government purchases B. A $40 billion tax cut C. A $10 billion tax cut and $30 billion increase in government purchases D. A $40 billion increase in government purchases
There are only two firms in an industry with demand curves q1 = 30 - P and q2 = 30 - P. Both have no fixed costs and each has a marginal cost of 10 per unit produced. If they behave as profit-maximizing price takers, each produces 10 units and sells them at a price of 10 so that each firm makes zero economic profits. If they form a cartel, their inverse demand curve is
A) Q = 30 - P. B) Q = 60 - 2P. C) P = 60 - 2Q. D) P = 30 - Q/2.