A Pigovian tax imposed on consumers ___________ the price, and if the same tax were imposed on producers, it would _____________ the price.
A. increases; decrease
B. decreases; increase
C. increases; increase
D. decreases; decrease
C. increases; increase
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A firm operating in a competitive market will stay in business in the short run so long as the market price exceeds the firm's average total cost; otherwise, the firm will shut down
a. True b. False Indicate whether the statement is true or false
One advantage of a proprietorship is that
A) it is relatively easy to raise financial capital for a proprietorship. B) a proprietorship is relatively easy to form and to dissolve. C) there are limits to the possible liabilities of the owner. D) depreciation rates on capital are higher.
Refer to the graph below. Which point is the break-even point for the firm?
A. A
B. B
C. C
D. D
Relative to a cure for AIDS, the demand for an AIDS vaccine would be
A. more inelastic. B. equal in elasticity. C. more elastic. D. not as elastic.