Economies of scale can occur as a result of which of the following?
A) increasing marginal returns as the firm increases its size
B) lower fixed cost as the firm increases its size
C) management difficulties as the firm increases its size
D) greater specialization of labor and capital as the firm increases its size
E) increased total cost when the firm increases its size
D
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Which of the following will cause the demand curve for Beatles' compact discs to shift to the right?
A) An increase in the price of the discs B) A decrease in consumers' incomes C) An increase in the price of Phil Collins' latest compact disc (a substitute) D) all of the above E) none of the above
Suppose the government imposes a tax of 10 percent on the first $40,000 of income and 20 percent on all income above $40,000 . What are the tax liability and the marginal tax rate for a person whose income is $30,000?
a. both are 10 percent b. 10 percent and $2,000 . respectively c. $3,000 and 10 percent, respectively d. $3,000 and 20 percent, respectively