If a profit-maximizing firm finds that, at its current level of production, MR > MC, it will
A) earn greater profits than if MR = MC.
B) increase output.
C) decrease output.
D) shut down.
B
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The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S0 to S1. The total tax revenue is equal to
A) $400,000. B) $800,000. C) $500,000. D) $200,000. E) More information is needed to determine the total tax revenue.
________ are highly excludable but non-rival in consumption
A) Public goods B) Private goods C) Common pool resources D) Club goods
A free rider is someone who
A) hops on the bus for free. B) enjoys the flowers I have planted and does not compensate me for them. C) creates a negative externality. D) buys a ticket for a movie.
Higher energy prices can be used to explain the productivity slowdown in the period from
A. 1948 to 1973. B. 1973 to 1995. C. 1973 to 1980. D. 1995 to 2000.