Which of the following is NOT an assumption of the initial Cournot Oligopoly Model?
A) Market lasts for only one period.
B) Firms act simultaneously.
C) Firms have same cost functions.
D) Firms produce differentiated products.
D
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Answer the following statement(s) true (T) or false (F)
1. A Pigouvian tax is a charge on a good whose production generates a negative externality, such that the charge isequal to the MEC at the competitive output level.
2. In the single-polluter case, a firm faced with an emission charge for pollution implemented as a marginal tax (MT) will abate as long as MAC
Suppose the following information describes the economy:Government purchases of goods and services1,000Household saving2,000Government transfers and interest payments500Tax collections1,500Business saving2,500Private saving equals ________; public saving equals ________; national saving equals ________.
A. 500; -1,500 B. 4,500; 0 C. 4,500; 1,000 D. 1,000; 1,000
To decrease anxiety in its most accomplished teachers, a school decides to offer them tenure, to help them concentrate on teaching better. Instead it notices that even the best of the teachers started to get sloppy with their work. The school did not foresee
a. Adverse selection b. Moral hazard c. All of the above d. None of the above
For a person earning $75000, the marginal tax amount from 40,001 to $75000 is:
A. $5,000
B. $7,500
C. $8,750
D. $14,250