One reason supply curves have an upward slope is because
A) increased supply will require increased technology.
B) to have more of the good supplied requires more firms to open.
C) people will pay a higher price when less is supplied.
D) a higher price brings a greater profit, so firms want to sell more of that good.
E) None of the above answers is correct because supply curves have a downward slope.
D
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Suppose you paid $500,000 for an asset. You hold the asset for five years. The interest rate that you get for the asset is 10%. Assume the tax rate on capital gains is 20%.
(A) If capital gains are taxed only when the asset is realized, how much will you have earned on the asset? (B) Suppose that capital gains are taxed annually instead of at realization. How much will you have earned on the asset? (C) How big is the difference in the two taxing schemes?
If a price ceiling of $8 were placed in the market in the graph shown:
A. some surplus is transferred from consumer to producer.
B. some surplus is transferred from producer to consumer.
C. all consumers are made better off.
D. all producers are made better off.
AACSB: Knowledge Application
All of these allow a firm to differentiate its product, except
a. Product branding b. Reducing quality c. Advertising d. Limiting availability
A perfectly competitive firm is a price taker, but a monopoly is a price maker
a. True b. False Indicate whether the statement is true or false