The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. How much producer surplus is lost?

Holdouts who set a price for land above their opportunity cost and refuse to budge on selling their land for a lower price can reduce the size of the economic pie

Indicate whether the statement is true or false

A perfectly competitive firm will maximize its profit at the rate of output where the vertical distance between its total revenue curve and total cost curve is the largest. This is the same rate of output where

A) marginal revenue equals marginal cost. B) marginal revenue equals marginal profit. C) marginal revenue equals average revenue. D) average total cost equals marginal revenue.