Variable cost divided by quantity produced is

If the demand curve for a firm is downward-sloping, its marginal revenue curve

A) will lie below the demand curve. B) will lie above the demand curve. C) is the same as the demand curve. D) is horizontal.

The tax wedge is the difference between the

A) amount of taxes needed to pay off the national debt and the actual amount of taxes. B) nominal and real interest rates. C) pretax and posttax returns to an economic activity. D) amount of taxes needed to balance the federal budget and the actual amount of taxes.