The above figure shows the market for steel ingots. If the market is competitive, and the government institutes a $100 specific tax on steel, then
A) less than the socially optimal quantity of steel is produced.
B) the socially optimal quantity of steel of 50 units is produced.
C) the socially optimal quantity of steel of 100 units is produced.
D) more than the socially optimal quantity of steel is produced.
A
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Refer to the scenario above. What is the change in total revenue due to the price change?
A) The total revenue increases by $350. B) The total revenue increases by $3,400. C) The total revenue decreases by $1,650. D) The total revenue decreases by $2,275.
The fundamental rule of profit maximization is for the firm to produce where
a. MR = MC b. ATC is minimized c. quantity of output is maximized d. it is most efficient e. total revenue is maximized
The sum of the components of aggregate expenditure that are not influenced by real gdp is called?
A) autonomous consumption. B) the MPC. C) autonomous expenditures. D) induced expenditures.
Business cycles are generally considered in:
A. the long-run framework. B. both the short-run and long-run frameworks. C. the short-run framework. D. neither the short-run nor the long-run frameworks.