When a tax is imposed on a good, at the after-tax equilibrium the marginal benefit of the last unit produced ________ the marginal cost
A) equals
B) is greater than
C) is less than
D) can be calculated but is not comparable to
E) The premise of the question is incorrect because after a tax is imposed, it becomes impossible to determine the marginal benefit and the marginal cost.
B
Economics
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Explain how firms choose the amount of capital goods to purchase and the amount of labor to hire
What will be an ideal response?
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When economists say the quantity supplied of a product has increased, they mean the:
a. supply curve has shifted to the left. b. supply curve has shifted to the right. c. price of the product has risen, and consequently, suppliers are producing more of it. d. price of the product has fallen, and consequently, suppliers are producing less of it.
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