Assume Congress Decides That Oil Companies Are Making Too Much

question 5

Multiple Choice

Assume Congress decides that oil companies are making too much profit and decides to tax oil companies for each gallon of gasoline produced.This would

• A) shift the marginal cost curve up.
• B) shift the marginal cost curve down.
• C) shift the average fixed cost curve up.
• D) shift the average fixed cost curve down.

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Definitions:

Variance

A statistical measure that represents the degree of spread or dispersion of a set of values from their mean.

Probability

The quantification of the probability that an event will happen, represented as a number ranging from 0 to 1.

Crashing

A project management technique used to reduce the time for project completion through the increase of resources on critical tasks.

CPM Network

Critical Path Method Network; a project management tool that outlines every task necessary to complete a project and the relationships between those tasks, helping identify the longest stretch of dependent activities and the time necessary to complete them.