Governments may use microeconomic models to study the effects of a new tax on
A) the prices consumers pay.
B) the money supply.
C) the prices charged by producers.
D) A and C
D
Economics
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The per-worker production function has a ________ slope, indicating that increases in capital per hour worked ________ real GDP
A) positive; decrease B) negative; decrease C) positive; increase D) negative; increase
Economics
Suppose the demand for Pepsi-Cola is qp = 50 - 2pp + 1pc. The firm faces a constant marginal cost of m, and pc denotes the price of Coca-Cola
Assuming Bertrand behavior, derive Pepsi-Cola's best-response function and explain how the firm changes price in response to changes in its own marginal cost and changes in Coca-Cola's price.
Economics