Because a supplier will not charge more or less than the market price, that individual supplier’s demand curve is ______ over the entire range of output.
a. vertical
b. horizontal
c. upward diagonal
d. downward diagonal
b. horizontal
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Severance taxes do not allow companies to shift any the tax burden to demanders because the supply of natural resources is completely inelastic
a. True b. False
The term "free rider"
a. refers to the reduction of incentives for an individual to provide effort. b. describes the privatization of goods and property. c. refers to a situation in which resources are overused and quickly exhausted. d. describes people who did not pay for their ship travel to the colonial US because their relatives would pay their fares once they arrived.
Which of the following algebraic expressions is inaccurate?
A. TC=TVC+TFC B. ATC=AFC-AVC C. AFC=ATC-AVC D. MC=TC(Q)-TC(Q-1)
If future benefits are underestimated by a firm,
A. the firm will invest too much in capital. B. the firm will only sell bonds to invest in capital. C. the firm will invest too little in capital. D. the firm will use only retained earnings to invest in capital.