Looking at the supply-side effects on aggregate supply shows that a tax hike on labor income
A) decreases potential GDP.
B) weakens the incentive to work.
C) increases potential GDP because people work more to pay the higher taxes.
D) Both answers A and B are correct.
E) None of the above is correct.
D
Economics
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"The duopolists' dilemma occurs when firms in a duopoly coordinate their decisions to achieve the best possible outcome." Is the previous statement correct or incorrect? Why?
What will be an ideal response?
Economics
A monopolist sells to two consumer groups, students and non-students
Demand for students: Q = 500 - 1/2P Demand for non-students: Q = 750 - 2P MC = 20 Find the profit-maximizing price/quantity combination in each market if the groups can be separated.
Economics