In the long run, both monopolistic competition and perfect competition result in:
a. a wide variety of brand-name choices for consumers.
b. an efficient allocation of resources.
c. zero economic profit for firms.
d. excess capacity.
c
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If there is a collusive agreement in a duopoly to maximize profit, then the price will
A) equal the marginal cost of production. B) equal the average total cost of production. C) be the same as the price set by a monopoly. D) be the same as the price set by a competitive industry.
Suppose Seth and Nathan are college students with the same annual income, yet Seth pays half of the annual income tax that Nathan does
Which statement best summarizes a possible issue with this outcome from a principle of tax policy perspective? a. It violates the principle of vertical equity. b. It violates the principle of diagonal equity. c. It violates the principle of horizontal equity. d. It violates the benefit principle.