Author Question: Which of the following is a firm's supply curve in a perfectly competitive market? a. Total cost. ... (Read 83 times)

frankwu · **on:** Jun 30, 2018

Which of the following is a firm's supply curve in a perfectly competitive market?
a. Total cost.
b. Marginal revenue.
c. Marginal cost.
d. Average variable cost.

Question 2

Good A has a price elasticity of demand of .27, while good B has a price elasticity of demand of 2.9 . To raise the most tax revenue, the government should:
a. place a unit tax on good A.
b. place a unit tax on good B.
c. raise the price elasticity of demand for good A.
d. subsidize the production of good B.
e. cut its spending for various social programs.