In the above figure, at the profit-maximizing rate of production for the perfectly competitive firm total revenue is

Good A has a price elasticity of demand of .27, while good B has a price elasticity of demand of 2.9 . To raise the most tax revenue, the government should:

a. place a unit tax on good A. b. place a unit tax on good B. c. raise the price elasticity of demand for good A. d. subsidize the production of good B. e. cut its spending for various social programs.

If minimum wage legislation does not cause unemployment, then:

A. those who work for minimum wage will benefit. B. firms will generally gain by earning higher profits. C. most likely the government won't study how minimum wage legislation may affect employment. D. minimum wages may still be binding for many employees.