Suppose the government imposes a 25-cent tax on the buyers of incandescent light bulbs. Which of the following is not correct? The tax would
a. shift the demand curve downward by 25 cents.
b. lower the equilibrium price by 25 cents.
c. reduce the equilibrium quantity.
d. discourage market activity.
b
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As we observe the cost curves graph, we see that the
A) MC curve intersects the ATC curve at its maximum. B) MC curve cannot be U-shaped. C) ATC curve always has a negative slope. D) MC curve intersects the AVC curve and ATC curve at their minimums. E) MC constantly falls as output increases.
What are the constraints that a firm faces? How does each constraint limit the firm's profit?
What will be an ideal response?
Which of the following is most likely to be a fixed cost for a business?
a. payment for raw materials used in manufacturing goods b. interest payments on a loan used to finance the construction of a building c. shipping charges for the delivery of products d. wages paid to temporary workers
If Asian economies suffer a serious economic slump, U.S. net exports will
a. increase and AD will shift rightward. b. increase and AD will shift leftward. c. decrease and AD will shift leftward. d. decrease and AD will shift rightward.