A $2.00 increase in the size of a tax on a good will only cause the price for buyers to increase by $2.00 if
A) demand is perfectly inelastic.
B) demand is perfectly elastic.
C) demand is unit elastic.
D) demand is inelastic, but not perfectly inelastic.
E) demand is elastic, but not perfectly elastic.
A
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A relative price is
A) the number of dollars that must be given up in exchange for the good. B) also called the money price. C) not an opportunity cost. D) the ratio of one price to another price.
Why do firms pay dividends? It would appear that they are subject to double taxation, giving more incentive to eliminate them.
What will be an ideal response?
The marginal cost curve:
A. is U-shaped. B. rises when marginal product falls, and falls when marginal product rises. C. intersects ATC at the average total cost curve's minimum. D. All of these are true.
The mainstream orthodox treatment of the firm is based on the assumption of:
(a) Sales maximization. (b) Revenue maximization. (c) Profit maximization. (d) None of the above.