Holding other factors constant, an increase in the tax rate on revenue generated by capital will:

Which of the following equations is CORRECT?

A) accounting profit = total revenue - (explicit costs + implicit costs) B) normal profit = accounting profit + economic profit C) economic profit = accounting profit - implicit costs D) economic profit = accounting profit - explicit costs

The total amount of consumer surplus and producer surplus is at its maximum when

A. the government imposes a price floor that is higher than the market clearing price. B. consumers and producers are allowed to trade at the market clearing price. C. the government imposes a price ceiling that is lower than the market clearing price. D. free market exchanges do not exist.