When a firm is a price maker
A) price is equal to marginal revenue.
B) price is greater than marginal revenue.
C) price is less than marginal revenue.
D) price is equal to marginal cost.
B
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Jamie has enough money to buy either a Mountain Dew, or a Pepsi, or a bag of chips. He chooses to buy the Mountain Dew. The opportunity cost of the Mountain Dew is
A) the Pepsi and the bag of chips. B) the Pepsi or the bag of chips, whichever the highest-valued alternative forgone. C) the Mountain Dew. D) the Pepsi because it is a drink, as is the Mountain Dew. E) zero because he enjoys the Mountain Dew.
Suppose the tax rate on the first $10,000 income is 0 percent; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $30,000; and 40 percent on any income over $80,000. Family A has income of $40,000 What is the marginal and average tax rate for Family A?
A) marginal—10 percent; average—10 percent B) marginal—20 percent; average—10 percent C) marginal—25 percent; average—20 percent D) marginal—20 percent; average—25 percent