The supply of milk in Nexus City is perfectly elastic. If a tax is imposed on each gallon of milk sold, ________
A) the burden of the tax will fall entirely on the sellers
B) the burden of the tax will fall entirely on the buyers
C) the tax incidence on the sellers is higher than that on the buyers
D) the deadweight loss due to taxation is zero
B
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Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2015. Bartech's average variable cost function is estimated to beAVC = 10 ? 0.003Q + 0.0000005Q2Bartech expects to face fixed costs of $12,000 in 2015. What is the minimum average variable cost?
A. $6.50 B. $0 C. $5.50 D. $6.00 E. $7.00
Real wages more accurately reflect the payment to labor because they are adjusted for the effects of inflation.
Answer the following statement true (T) or false (F)
Use the above table and assume a fixed cost of $1000. At an output of 4, AFC is
A. $200.
B. $250.
C. $500.
D. $1,000.
Which statement is false?
A. Throughout the 1980s, the Soviet Union devoted most of its capital and talent to its military establishment rather than to market reform. B. In the late 1970s, China began reforms, which eventually transformed it to a more market-oriented economy. C. Russia has been more successful than China in becoming a market-oriented economy. D. None of these statements are false.