For a perfectly competitive market in which firms face an identical constant marginal costs, the amount of consumer surplus increases if
A) market demand decreases.
B) market demand increases.
C) marginal cost increases.
D) none of the above: insufficient information to answer.
Answer: B
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Refer to Table 20.1. George is a single taxpayer with an income of $65,000. If George had received a raise of $3,500 at the beginning of the year, he would have paid an additional ________ in income tax
A) $665 B) $945 C) $1,000 D) $1,330
Refer to Table 12-4. If the market price is $45, the firm
A) will earn profit of $1,040. B) will suffer a loss of $200. C) earn a profit of $3,600. D) will break even.
To know the customer is to understand costs
Indicate whether the statement is true or false
A private good is
A. nonrival in consumption. B. subject to free rider problems. C. not subject to exclusion. D. subject to exclusion.