A sales tax will be divided so that
A) the buyers pay the full amount if supply is perfectly inelastic.
B) the sellers pay the full amount if supply is perfectly inelastic.
C) the sellers pay the full amount if supply is perfectly elastic.
D) both buyers and sellers pay some of the tax if supply is perfectly elastic.
Ques. 2The figure above shows a monopoly firm's demand curve. At point u in the figure, the demand facing the monopoly is
A) elastic.
B) unit elastic.
C) inelastic.
D) less than the supply.
Ques. 3Firms A and B can conduct research and development (R&D) or not conduct it. R&D is costly but can increase the quality of the product and increase sales.
The payoff matrix is the economic profits of the two firms and is given above, where the numbers are millions of dollars. A's best strategy is to A) conduct R&D regardless of what B does.
B) not conduct R&D regardless of what B does.
C) conduct R&D only if B conducts R&D.
D) conduct R&D only if B does not conduction R&D.
Ques. 4In the above figure, which curve indicates that the level of food production does not affect the population growth rate?
A) F
B) G
C) H
D) I
Ques. 5The Firefox, Safari, and Opera browsers are an example of ________.
A) products produced in monopoly industries
B) products produced in perfectly competitive industries
C) product differentiation
D) homogeneous products
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