Assume Congress decides that oil companies are making too much profit and decides to tax oil companies for each gallon of gasoline produced. This would
A) shift the marginal cost curve up.
B) shift the marginal cost curve down.
C) shift the average fixed cost curve up.
D) shift the average fixed cost curve down.
A
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Answer the following statement(s) true (T) or false (F)
1. In a model that analyzes the effects of a tax change, the tax serves as an endogenous variable. 2. The embarrassment theory suggests why shopping carts should be smaller. 3. An economic model, even if unrealistic, is useful as long as it makes predictions that are realistic. 4. Efficiency is the only criterion by which economists judge policies. 5. All points on a risk-neutral individual's indifference curve have the same expected value.
The richest American is ______.
Fill in the blank(s) with the appropriate word(s).
If average cost is decreasing, then marginal cost
a. Must be increasing b. Must be greater than average cost c. Must be less than average cost d. None of the above
In a condition of ______, price produces no change in quantity at all.
a. elastic supply b. perfectly elastic supply c. inelastic supply d. perfectly inelastic supply