A specific tax of $1 per unit of output will affect a firm's
A) average total cost, average variable cost, average fixed cost, and marginal cost.
B) average total cost, average variable cost, and average fixed cost.
C) average total cost, average variable cost, and marginal cost.
D) marginal cost only.
C
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Explain the process by which the banking system creates money
What will be an ideal response?
Refer to Figure 10.9. Other things equal, a decrease in the nominal money supply by the Fed is best represented as a change in equilibrium from
A) point A to point B. B) point A to point D. C) point C to point B. D) point C to point D.
Part of the pollution problem is due to
a. the absence of markets for goods like clean air and clean water. b. the lack of well-defined property rights to clean air and clean water. c. the unreliability of voluntary programs to cut pollution. d. All of the above are correct.
Julio borrows $250 from Ricky. Ricky wants to make a 5% real return on his money, so they both agree on a 5% interest rate paid next year. Both don't anticipate the 5% inflation next year. In this case
A. Julio will pay $15 a year from now on. B. Julio is better off. C. Ricky will receive more than 5% of real rate of return a year from now. D. Ricky is better off.