Producing a homogeneous product occurs in which of the following industries?

In the above figure, the slope at point b is

A) 1. B) 5/2. C) between 1 and 5/2. D) greater than 5/2.

In the short run, specific taxes on a firm result in:

a. price increases which may not persist in the long run. b. an increase in consumer surplus because the tax permits spending in additional government services. c. shortages of the good being taxed. d. an increase in producer surplus because of the rise in price.