If a farmer earns a larger profit than the "normal profit" by producing a special type of milk that becomes popular,
A. the farm's owners are likely to withdraw from the industry in order to retire early.
B. the firm will continue to earn its "normal profits" far into the future.
C. other farmers are likely to produce the same milk, pushing down the prevailing market price.
D. other farmers are likely to produce the same milk, pushing up the prevailing market price.
Answer: C
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The sole proprietorship constitutes what percentage of the total number of firms in the United States?
a. 90 percent b. 75 percent c. 60 percent d. 45 percent e. 20 percent
Compute the tax rates for the three taxpayers shown in Table 33.1. Then use the table to answer the indicated question. TaxpayerIncome (Dollars)Taxable Income (Dollars)Taxes Paid (Dollars)Effective Tax Rate(Percent)Nominal Tax Rate(Percent)1$200,000$100,000$6,000________%________%2100,00080,0008,000________%________%360,00048,00012,000________%________%In Table 33.1, the nominal tax rate for taxpayer 3 is
A. 20.0 percent. B. 5.0 percent. C. 12.5 percent. D. 25.0 percent.
Suppose that demand is inelastic within a certain price range. For that price range,
a. an increase in price would increase total revenue because the decrease in quantity demanded is proportionately less than the increase in price. b. an increase in price would decrease total revenue because the decrease in quantity demanded is proportionately greater than the increase in price. c. a decrease in price would increase total revenue because the increase in quantity demanded is proportionately smaller than the decrease in price. d. a decrease in price would not affect total revenue.
Exhibit 6A-4 Consumer equilibrium
?
Given the budget line and indifference curves shown in Exhibit 6A-4, at point D:
A. Px exceeds Py. B. MRS = Px / Py. C. MUx = MUy. D. MRS = Py / Px.