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In figure 2, the deadweight loss to scoiety with a price floor of $600 would be
$0
$6000
$21000
$10500
$14400 |
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In figure 2, begin again at supply 1 and Demand 1 with no price ceilings or floors imposed. Now assume the government imposes an 350 excise unit tax on suppliers of Product A. The tax incidence on suppliers would be.
350
0
150
200
50 |
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In figure 2, continuing with number 29, the tax incidence on buyers of product A would be.
350
0
150
200
50 |
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Production of Product A groundwater in figure 2 is polluted. Economists estimate that the cost is 350. Again, assuming there is o tax or subsidy- only a free market- what would be the deadweight loss to society from product A production.
a. .5(400-250) (180-60)
b. .5 (800-400) (60-0)
c. .5 (750-400) (120-60)
d. .5 (600-250) (120-60) |
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When Rayna purchased an orange tree for her yard, the rest of her neighbors enjoyed the smell of this tree, its fruit, its flowers. Assuming this experience is universal:
a. The free market competitive equilibrium outcome is inefficient
b. An excise tax on orange tree sellers may improve efficiency.
c. A government rebate program to encourage orange tree purchases may improve efficiency for society.
d. Answers A and B are both correct.
e. Answers A and C are both correct |
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| e. Answers A and C are both correct |
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In table 1 the firm experiences diminishing returns to labor between:
a. 2 and 4 workers
b. 3 and 4 workers
c. 1 and 2 workers
d. 4 and 5 workers
e. 5 and 6 workers |
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| d. Between 4 and 5 workers |
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In figure 3, the firm is facing diseconomies of scale from:
a. 600 units to 1200 units per month.
b. 600 units to 1400 units per month
c. 0 units to 1400 units per month
d. Beyond 1400 units per month |
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| d. Beyond 1400 units per month |
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In figure three above, the market would typically support about:
6 producers
4 producers
9 producers
1 producer
9 producers |
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Which of the following is correct:
a. To maximize profit, firms should set output where MR>MC
b. To continue operating in the short run, firms need to at least be able to cover their AVC
c. To maximize profit, firms should set output where MR=MC
d. Answers A and B are both correct
e. Answers B and C are both correct |
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| E. answers b and c are both correct |
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