Exhibit 7-4 Marginal cost and revenue for a firm
UnitQuantity
Marginal Cost
Marginal Revenue
12
$  5
$9
13
    6
  9
14
    7
  9
15
    8
  9
16
    9
  9
17
  10
  9
In Exhibit 7-4, what is this firm's profit-maximizing rate of output?

If you pay $2,000 in taxes on an income of $20,000, and a tax of $3,500 on an income of $30,000, then over this range of income the tax is

A) regressive. B) proportional. C) progressive. D) There is insufficient information to answer the question.

An investment intermediary that lends funds to consumers is

A) a finance company. B) an investment bank. C) a finance fund. D) a consumer company.