If oil refiners expect the government to tax away any profits created by international supply disruptions, refiners will choose to
A) carry smaller inventories of crude petroleum.
B) leave the oil refining business.
C) prevent the price of crude petroleum from rising.
D) raise their prices to cover their added risks.
E) take a higher percentage of their profits as windfalls.
Question 2
If a seller can sell 5 units at 8 each but can sell 6 units only by lowering the price to 7 (and must sell all units at the same price), the marginal revenue from selling the 6th unit is
A) 42.
B) 7.50.
C) 7.
D) 2.
E) none of the above.
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