The purpose of a Clarke tax is to
a. give people an incentive to truthfully reveal their preferences for a public good.
b. raise enough revenue to pay for a public good.
c. give producers an incentive to supply nonrivalrous public goods in socially efficient quantities.
d. prevent the dissipation of rents that would occur with a nonexcludable public good.
a. give people an incentive to truthfully reveal their preferences for a public good.
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How does a natural monopoly differ from a firm that becomes a monopoly due to network effects?
What will be an ideal response?
Refer to Figure 12-18. Use the figure above to answer the following questions
a. How can you determine that the figure represents a graph of a perfectly competitive firm? Be specific; indicate which curve gives you the information and how you use this information to arrive at your conclusion. b. What is the market price? c. What is the profit-maximizing output? d. What is total revenue at the profit-maximizing output? e. What is the total cost at the profit-maximizing output? f. What is the profit or loss at the profit-maximizing output? g. What is the firm's total fixed cost? h. What is the total variable cost? i. Identify the firm's short-run supply curve. j. Is the industry in a long-run equilibrium? k. If it is not in long-run equilibrium, what will happen in this industry to restore long-run equilibrium? l. In long-run equilibrium, what is the firm's profit maximizing quantity?
A decrease in the interest rate could have been caused by the money-demand curve shifting
a) leftward because the price level fall. b) leftward because the price level rose. c) rightward because the price level fell. d) rightward because the price level rose.
Which of the following assumptions is(are) NOT made in consumer behavior theory?
A. Consumers have complete information. B. Consumers can rank all bundles of goods. C. Consumers can measure the utility they get from all bundles of goods. D. both a and b E. None of the above are assumptions made in consumer behavior theory.