As market price increases in the short run, a profit-maximizing ...

[Wadzanai]

As market price increases in the short run, a profit-maximizing firm in a perfectly competitive market will expand output along its:
 a. marginal cost curve.
  b. average total cost curve.
  c. average variable cost curve.
  d. market demand curve.

Question 2

If an excise tax is placed on a product that has a perfectly inelastic demand, then:
 a. the entire tax will be paid by the consumer.
 b. the entire tax will be paid by the producer.
 c. the consumer and producer will each pay a share of the tax.
 d. the incidence of the tax cannot be determined unless we know the coefficient of price elasticity of supply.
  e. the tax is progressive.

[tanna.moeller]

Answer to Question 1

a

Answer to Question 2

a