If Enforcement Is Aimed at Buyers of an Illegal Good,the

question 99

Multiple Choice

If enforcement is aimed at buyers of an illegal good,the

• A)price and quantity bought decrease.
• B)price and quantity bought increase.
• C)price rises and quantity bought decreases.
• D)price falls and quantity bought increases.
• E)price change is uncertain and quantity bought decreases.

---

Definitions:

Long-Run Average Cost Curve

A graphical representation that shows the lowest cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

ATC

The abbreviation for Average Total Cost, which is the total cost divided by the number of goods produced.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent or salaries.

Variable Cost

Costs that vary directly with the level of output or production volume, such as materials and labor expenses.