If a per-unit tax on output sold is imposed on a monopoly's product, the monopolist will increase its market price by the full amount of the tax
Indicate whether the statement is true or false
FALSE
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If ten cases of spring water are sold at a price of $6 each in a perfectly competitive output market and the marginal product of the last unit of labor is 5, then the marginal revenue product of that last unit of labor is
a. $60 b. $30 c. $50 d. $2 e. 60 cents
Which of the following is a possible drawback of horizontal fracking?
a. A fall in the cost of recovering natural gas and oil b. An increase in the price of gas and oil as a result of a decline in the supply of natural gas and oil c. A fall in imports of natural gas and oil d. A fall in environmental exploitation due to the means employed to extract oil e. An increase in harmful air emissions, water contamination, and problems associated with the disposal of harmful waste fluids
An optimal level of output is one at which marginal profit > 0
a. True b. False Indicate whether the statement is true or false
Informational asymmetry in constructing a contract between a buyer and a seller can lead the seller to:
A. focus on ethical codes of conduct. B. make a perfect contract. C. improve the quality of the product. D. lower the price of the product.