Mark and Stacy Are Married,file a Joint Return,and Have One

question 19

Multiple Choice

Mark and Stacy are married,file a joint return,and have one child,age 3.Their combined AGI is $55,000.Mark and Stacy incur $3,500 of child care expenses during the current year.Mark's employer reimburses him $1,500 under a qualified dependent care assistance plan.The child and dependent care credit is

• A)$300.
• B)$600.
• C)$700.
• D)$1,200.

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Definitions:

Price-taker Industry

An industry in which individual firms have no control over the price of their product; they "take" the market price as given.

Long-run Equilibrium

A state in which all factors of production and costs are variable, and firms no longer have any incentives to enter or exit the market, resulting in an optimal allocation of resources.

Marginal Cost

The increase in cost resulting from the production of one additional unit of a good or service.

Perfectly Elastic

Describes a market situation where the quantity demanded or supplied changes infinitely with even a slight change in price, indicating extreme sensitivity.