When there is a cut in payroll taxes, there is a(n) ________ in the tax wedge that lowers the cost of labor. This tax cut will ________ the quantity of labor demanded and ________ the quantity of labor employed
A) increase; increase; increase
B) decrease; increase; decrease
C) decrease; increase; increase
D) decrease; decrease; increase
E) increase; decrease; decrease
C
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Given the information in Scenario 4.3, suppose that the price of erasers increases slightly from $10. How will this affect the total revenue collected by the firm?
A) Total revenue will increase. B) Total revenue will not change. C) Total revenue will decrease. D) There will be an indeterminate change in total revenue.
A monopolist faces the least price-elastic demand curve because:
a. the consumers have only one place to buy the good. b. the monopolist produces a standardized product. c. the monopolist undertakes a huge expenditure to produce the product. d. the monopolist supplies to an insignificant portion of the market. e. the monopolist produces an absolutely necessary good having close substitutes.
A monopoly will look for opportunities to price discriminate because the practice
A. leads to greater profits. B. allows it to charge higher prices. C. leads to selling more units. D. is desired by customers.
A market in which profit opportunities are eliminated almost instantaneously is
A. an efficient market. B. a capitalist market. C. a laissez-faire market. D. a socialist market.