Which of the following is NOT true about
profit maximization for a firm?
A.
Profit
maximization occurs where marginal revenue equals marginal
cost.
B.
Profit
maximization occurs where the profit per unit of the last unit
produced is close to and just equal to zero.
C.
Profit
maximization occurs where the marginal revenue product of an input
equals the marginal cost of employing or using that input.
D.
Profit
maximization occurs where output is restricted below the point
where the marginal social benefit of the last unit of production is
just equal to the marginal social cost of making that
unit.
Which of the following is true about the tax
incidence and tax burden of an increase in tax?
A.
The tax incidence
of a tax is always equivalent to its ultimate tax burden.
B.
If the demand
curve is more elastic than the supply curve, consumers will bear
the majority of the burden of an increase in a tax placed on
buyers.
C.
If the demand
curve is much more inelastic than the supply curve, then buyers
will shoulder more of the burden of a tax placed on suppliers of a
product.
D.
The elasticity of
demand and supply curves has no relevance for the ultimate tax
burden.


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