All of the following are true regarding transfer prices except which one? OA. Transfer prices can affect the taxes a firm must pay. B. The transfer price is the internal firm price on an input that input-using division charges the input-producing division. O C. Law in many nations state that a transfer price must equal the price charged to an independent customer. OD. The transfer price is the internal firm price on an input that input-producing division charges the input- using division.
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- The city govermment is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. O Average total cost will increase. O Marginal cost will increase. O Average variable cost will remain unchanged. O Average fixed cost will increase. Which of the following statements is true as a result of the per-burger tax? Check all that apply. OAverage total cost will increase. O Average variable cost will increase. O Average fixed cost will remain unchanged. O Marginal cost will remain unchanged. 52°F Mostly cloudy Cop 441 DI & 8.What is the marginal revenue gained when one more unit of output is sold? The price at which the extra unit is sold but adds the rise in revenue of the previous units that could have been sold at a higher price O a. O b. The price of the unit of output sold minus the production cost of that unit The price of the unit of output sold O c. Od. The price at which the extra unit is sold but subtracts the drop in revenue of the previous units that could have been sold at a higher priceConsider the below graph. To force this firm to produce the efficient level of output, the government should impose a tax of 15 HX P = 10 0 Select one: Price per unit a. more than $15.00 per bag of fertilizer. Ob $5.00 per bag of fertilizer. O c. $15.00 per bag of fertilizer. O d. $10.00 per bag of fertilizer. 50 60 Bags offertilizer MSC MC ·ដ្ឋ
- Time left 0:19:24 ABC Company incurs a cost of 50 cents to produce a dozen eggs, while XYZ Company incurs a cost of 70 cents to produce a dozen eggs. Which of the following price increases would cause both companies to experience an increase in producer surplus? Select one: O a. All of these price increases would cause both companies to experience a loss in producer surplus. O b. The price of a dozen eggs increases from 55 cents to 75 cents. а. O c. The price of a dozen eggs increases from 40 cents to 55 cents. O d. The price of a dozen eggs increases from 55 cents to 70 cents.This is the demand and supply for ABC company that sells widgets in Texas. Refer to the diagram below, if the market is in equilibrium, the producer surplus earned by the seller of the Ist unit is $ 80 $70 $ 60 $ 50 $ 40 $ 30 $ 20 $ 10 D. 10 20 30 40 50 60 70 80 90 Q(Widgets) O a. $70.00 O b. $10.00 O c. $20.00 O d. $30.00Assume that restaurants in aiports rent the space that they occupy and that the restaurant industry is competitive. Keeping in mind the concept of economic rent, we know that food prices will be higher at the airport restaurants than at other locations because: O airport restaurants generate larger economic profits than other restaurants at different locations. O the number of potential customers is greater at the airport locations. O the rent paid by the restaurant is higher than the rent paid at other locations. O demand for food at airports is less elastic than at other locations.
- Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the following will have a larger effect the long-run price of bicycles: a government program to advertise the health benefits of bicyclingor (2) a government program increases the demand for steel, an input in the manufacture of bicycles that is produced in an increasing cost industry ? O. Option 1: shifts the demand curve out and increases the price. O. Option 2: shifts the supply curve up and increases the price O. Option 2: it shifts the demand curve up and increases the quantity. O. Option 2: shifts the supply curve up and increases the quantity.A company manufactures three product. The productis sold in three communities, X, Y and Z. The supply function schedules of the three communities as well as that of the entire market supply for okyerefo soap are shown below Unit Price Community X Community Y Community Z Market Supply 100 250 520 725 640 850 700 1000 Usethe information in the table to estimate i. i. the supply equations of each of the three communities. ii. market supply function. ii. market supply when the price decreases to 50.To sell one more unit of output, the seller must make one more and sell it for O less than the price at which the last unit sold the marginal revenue O the cost of the resources used to produce it O the same price as the last unit sold
- ples of Microeconomics - Spring21 Price ceilings, such as rent ceilings, set below the equilibrium price Select one: a. increase producer surplus. O b. decrease producer surplus. Oc. do not affect producer surplus. O d. might increase or decrease producer surplus. PAGEWhich of the following statements is false regarding Producer Surplus? Time le O a. Producer surplus is the net economic benefit received by producers O b. Producer surplus is the difference between market price and marginal cost O c. Producer surplus is maximum under unregulated markets when there are sales taxes Od. Producer surplus is the area below the market price and above the supply curve Oe. Producer surplus is the difference between the total surplus and consumer surplusA firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?