Firms may react to a payroll tax by

A. hiring more labor.
B. reducing their output.
C. shifting to less capital intensive techniques.
D. substituting labor for capital.

Answer: B

Economics

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In which of the following market types do all firms sell products so identical that buyers do not care from which firm they buy?

A) perfect competition B) monopolistic competition C) oligopoly D) monopoly E) perfect competition and monopolistic competition

Economics

In the above figure, curve A is the ________ curve and curve B is the ________ curve

A) total variable cost; total fixed cost B) total cost; total fixed cost C) total fixed cost; total variable cost D) total cost; total variable cost E) total variable cost; total cost

Economics