The Clinton administration has recommended an increase in the tax on yachts to help pay for government programs. Which of the following is true?
A) The burden of this tax will fall entirely on yacht consumers.
B) The burden of this tax will fall entirely on yacht manufacturers.
C) The sales of yachts will decrease.
D) The profit of yacht manufacturers will increase.
E) Employment of workers in the yacht industry will increase.
C
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The figure above shows the cost, marginal revenue, and demand curves of Golden Chow, a producer of dog food. The market for dog food is monopolistic competition. In the long run as new firms enter, Golden Chow cuts its output to 200 cans per day
Its excess capacity is ________ cans per day. A) 0 B) between 0 and 200 C) between 201 and 400 D) more than 401
A good's real price is the:
A. dollar price of the good relative to the average dollar price of all other goods and services. B. average dollar price of the good. C. dollar price of the good relative to the real price of all other goods and services. D. absolute price of the good in dollar terms.