As long as the firm illustrated above remains open, it will set a price of ________ per month and it will ________

A) $50; earn an economic profit
B) $50; incur an economic loss
C) $40; earn an economic profit
D) $40; incur an economic loss
E) less than $20; incur an economic loss

B

Economics

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Dead capital is most likely to exist when

A) there are restrictions on imports. B) residents of a country face barriers to establishing legal ownership of resources. C) property rights are well-defined. D) there are restrictions on exports.

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The deadweight loss from a $3 tax will be largest in a market with

a. inelastic supply and elastic demand. b. inelastic supply and inelastic demand. c. elastic supply and elastic demand. d. elastic supply and inelastic demand.

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