A monopolist's demand curve is the same as the marginal revenue curve for the product
Indicate whether the statement is true or false
FALSE
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The figure above shows the market for fast food restaurant employees in a college town in a small nation to the East. The local Taco Bell pays its workers $12 an hour. This wage rate is
A) designed reduce the unemployment rate. B) an effort to increase the demand for labor. C) illegal because the equilibrium wage rate is $6 an hour. D) an efficiency wage aimed at reducing employee turnover. E) the actual equilibrium wage rate.
Correcting a market with an externality through taxation is _________ correcting it through a quota.
A. more efficient than B. less efficient than C. just as efficient as D. Any of these statements could be true depending on whether the tax is imposed on the buyer or seller.
A theory of fairness that holds that taxpayers should contribute to the government in ________ the benefits they receive from public expenditures is the benefits-received principle.
A. proportion to B. a greater proportion than C. a smaller proportion than D. The benefits-received principle does not equate taxpayer contributions to the government and benefits received from public expenditure.
Monopolistic competitive firms are productively inefficient because production occurs where:
A. Price is greater than marginal revenue B. Marginal cost is less than price C. Marginal cost is not at its lowest D. Average total cost is not at its lowest