Paul's Plumbing is a small business that employs 12 people. Which of the following is the best example of an implicit cost incurred by this firm?
a. The tax payments on property owned by the firm.
b. The wages paid to the 12 employees.
c. The half of the payroll taxes on the wages of the 12 employees paid by the employers, but not the half paid by the employees.
d. The accounting services provided free of charge to the firm by Paul's wife, who is an accountant.
d
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Refer to Figure 16-1. With perfect price discrimination, the firm will produce and sell
A) Q1 units. B) Q2 units. C) Q3 units. D) Q4 units.
If fast food is an inferior good then:
A. the quantity of fast food demanded will rise as the price of fast food rises. B. the demand for fast food will fall as income falls. C. the demand for fast food will fall as income rises. D. the demand for fast food will fall as the price of fast food rises.
Demand is more inelastic for an item which is a luxury as compared to an item which is a necessity.
Answer the following statement true (T) or false (F)
Explain the two models/theories of discrimination
What will be an ideal response?