The perfect competition price system is the most efficient because it equates MC = P = MU
a. True
b. False
Indicate whether the statement is true or false
True
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An income tax for which the average tax rate is constant called a
A) regressive income tax. B) proportional income tax. C) marginal income tax. D) progressive income tax.
Does a perfectly competitive producer have any incentive to undercut the current market price? Explain your answer
What will be an ideal response?
Which game does the Cournot model most resemble and why?
a. the Battle of the Sexes because firms need to coordinate their outputs. b. the Battle of the Sexes because firms disagree on which outcome is best. c. the Prisoners Dilemma because firms don't maximize joint payoffs in equilibrium. d. the Prisoners Dilemma because firms play dominant strategies.
Consumption expenditures do not include household purchases of
A) medical care. B) education. C) new houses. D) durable goods.