Author Question: A firm that is maximizing its profit A) is economically efficient and technologically efficient. ... (Read 111 times)

mynx · **on:** Jun 29, 2018

A firm that is maximizing its profit

A) is economically efficient and technologically efficient.
B) is economically efficient but might be technologically inefficient.
C) is technologically efficient but might be economically inefficient.
D) might be economically inefficient and/or technologically inefficient.

Question 2

A sales tax imposed on sellers shifts the supply curve leftward for the taxed good because the

A) tax is paid by the seller to the government and is, therefore, like a cost of production.
B) tax is actually shifted entirely onto the buyer who can afford only a smaller supply.
C) higher price causes entry into the market.
D) tax shifts the demand curve leftward.