Suppose the total revenue curve is derived from a particular linear demand curve. That demand curve must be:
A. inelastic for price declines that increase quantity demanded from 2 units to 3 units.
B. elastic for price declines that increase quantity demanded from 5 units to 6 units.
C. inelastic for price increases that reduce quantity demanded from 4 units to 3 units.
D. elastic for price increases that reduce quantity demanded from 4 units to 3 units.
D. elastic for price increases that reduce quantity demanded from 4 units to 3 units.
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A ________ describes the possible moves in a game in sequence and lists the payoffs to each possible combination of moves.
A. decision tree B. payoff matrix C. multi-period game D. game graph
"If Michigan's electric utilities were allowed to use marginal cost pricing, it would lead to economic profits for these utilities." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
Cooperation in repeated prisoner's dilemma situations seems to be enhanced by all of the following except
a. limited punishment schemes b. clarity of conditional rewards c. grim trigger strategy d. provocability--i.e., credible threats of punishment e. tit for tat strategy
Answer the following statements true (T) or false (F)
1. The tax base is the percentage at which the tax is levied. 2. A sales tax is sometimes said to be regressive because the rate at which it is assessed declines as more and more taxable items are purchased. 3. The sales tax is proportional with respect to the tax base of the amount of purchases. 4. Automobile license fees and gasoline taxes are based on the benefit-received theory of taxation. 5. An excise tax can be shifted relatively easily.