When a business has implicit costs
A) economic profits are greater than accounting profits.
B) economic and accounting profits are the same.
C) economic profits are less than accounting profits.
D) economic costs are the same as accounting costs.
Answer: C
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Several studies have shown promising links between green tea consumption and cancer prevention. How does this affect the market for green tea?
A) The quantity of green tea demanded decreases because this new information will increase the price of green tea. B) The green tea demand curve shifts to the right because of a change in tastes in favor of green tea. C) The green tea demand curve shifts to the left because this new information will increase the price of green tea. D) The quantity of green tea demanded increases because of a change in tastes in favor of green tea.
A corrective tax
a. can be used to internalize a negative externality. b. imposed on sellers shifts the supply curve to the left. c. imposed on buyers shifts the demand curve to the left. d. All of the above are correct.