Suppose the state legislature in your state imposes a state licensing fee of $100 per year to be paid by all firms that file state tax revenue reports. This new business tax:
A) increases marginal cost.
B) decreases marginal cost.
C) increases marginal revenue.
D) decreases marginal revenue.
E) none of the above
E
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If income increases and the demand for bus rides decreases,
A) bus rides are a normal good. B) consumers are behaving irrationally. C) bus rides are an inferior good. D) bus rides are a substitute good. E) bus rides must be a complement good with some other good.
The table above gives Andy's utility from popcorn. Andy's total utility from four boxes of popcorn is
A) 66. B) 70. C) 78. D) 82.
Suppose when a car wash has 2 washing stations and 5 workers and is able to wash 100 cars per day. When it adds a third station, but no more workers, it is able to wash 150 cars per day. The marginal product of the third washing station is:
a. 100 cars per day. b. 150 cars per day. c. 5 cars per day. d. 50 cars per day.
In a monopolistic competitive industry, short-run economic profit encourages entry of new firms until there are no economic profits in the long-run
a. True b. False Indicate whether the statement is true or false