Bridget drinks three sodas during a particular day. The marginal benefit she enjoys from drinking the third soda
a. can be thought of as the total benefit Bridget enjoys by drinking three sodas minus the total benefit she would have enjoyed by drinking just two sodas.
b. determines Bridget's willingness to pay for the third soda.
c. is likely different from the marginal benefit provided to Bridget by the second soda.
d. All of the above are correct.
d
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One of the provisions of the second stimulus bill increased the amount of investment spending that firms were allowed to depreciate for tax purposes from 50% to 100%
This is just one of over 100 temporary tax provisions affecting firms in the United States. Temporary tax breaks such as the increase in depreciation will tend to A) increase investment expenditures because the tax breaks will entice firms to leave other countries and invest in the United States. B) have little impact on current investment expenditures since the tax breaks are temporary. C) increase investment expenditures in both the short run and the long run, since investment is irreversible. D) increase investment expenditures in the short run but also increase the uncertainty and volatility of investment since the tax breaks are temporary.
In a perfectly competitive market, a firm that raises its price when its competitors do not
a. must have a differentiated product b. must have relatively high costs and therefore must raise price to compensate c. sells no goods d. gains market share e. will become a monopolist eventually