A per-unit tax on a good will ( )
A. result in a decrease in total surplus.
B. generally hurt only consumer surplus.
C. generally hurt only producer surplus.
D. result in an increase in total surplus.
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If the supply curve is perfectly elastic, a per-unit tax ( )
A. does not create deadweight loss.
B. does not reduce consumer surplus.
C. does not reduce producer surplus.
D. reduces consumer surplus but increases producer surplus.
When the marginal product of labor falls, the marginal cost of output ( )
A. falls, then rises.
B. becomes negative.
C. rises.
D. remains constant.
The minimum points of the average variable cost and average total cost curves occur where ( )
A. the marginal cost curve lies below the average variable cost and average total cost curves.
B. the marginal cost curve intersects those curves.
C. wages are the lowest.
D. the slope of total cost is the smallest.
Economies of scale ( ) a.
A. change in the size of operations and therefore is
B. long-run consideration. b. requires
C. more intensive use of existing plant and therefore is
D. short-run consideration. c. means that
E. doubling of plant size will double output. d. requires
F. change in the size of plant and therefore is
G. short-run consideration.
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