An Industry Has 1,000 Firms, Each with the Production Function

question 40

Multiple Choice

An industry has 1,000 firms, each with the production function f(x₁, x₂) =x^1/2₁x^1/2₂.The price of factor 1 is $1 and the price of factor 2 is $1.In the long run, both factors are variable, but in the short run, each firm is stuck with using 100 units of factor 2.The long-run industry supply curve is

• A)upward sloping with zero supply if price is less than $10.
• B)downward sloping for outputs less than 10.
• C)horizontal with zero supply for prices less than $2 and infinite supply for prices greater than $2.
• D)horizontal with zero supply for prices less than $10 and infinite supply for prices greater than $10.
• E)upward sloping with zero supply if price is less than $20.

Understand the tax filing statuses and choose the appropriate filing status based on individual circumstances.

Identify tax-advantaged investments and understand their benefits.

Recognize the forms and schedules used in the tax filing process.

Understand the concept of tax audits and identify the most common type of audit for taxpayers.

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Definitions:

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A passenger rail service that operates between different regions within a country, offering medium to long-distance travel options.