In the long run, firms in many industries often experience falling average total costs as a result of

Property taxes are the product of the tax rate (T) and the assessed value (V). The total property tax collected in your city (P) is: P = T•V. If the value of properties rise 4% and if Mayor and City Council reduces the property the tax rate by 2%, what happens to the total amount of property tax collected? [HINT: the percentage rate of change of a product is approximately the sum of the

percentage rates of change.} a. It rises 6 %. b. It rises 4 %. c. It rises 3 %. d. It rises 2 % e. If falls 2%.

Which of the following would be used in a representative household analysis?

a. the incomes of a randomly selected group of households b. the income of a case-study household c. the average of all households’ disposable incomes d. the average of all investment earnings