In the standard microeconomic of Pure Competition theory, it is recommended that a firm should slightly lower their prices in order to capture more of the marketshare and increase their economic profit. True or False If the State of California raised the average state "consumer sales tax rate" from
9.25
percent to 15 percent, then this şales tax will have its heavist impact on and raise the marginal cost curves for Callfornia businesses. Tip: Read carefully and think about this. True or False Once a firm reaches the lowest point on the Long Run Average Total Cost Curve then the firm will automatically charge a lower prices for their product or service. The cost analysis model that we studied in Chapter 9 said that when costs go down, then prices will also automatically go down. True or False Suppose a firm decided to leave a high-cost/ high-tax and poorly managed state like California to relocate to a lowcost/ low-tax and well managed state like Texas. They are doing this because they will be able to save 30 percent on the cost of their labor (employees) and because the Texas state government is also giving them special tax incentives for new machinery and free land. This decision by the firm would be a good example of long-run cost management. (Hewlett Packard, Oracle, Tesla, SpaceX, Toyota North, Charles Schwab, Digital Realty Trust, Chevron, Jamba Julce, Occidental Petroleum, etc... are a few of thousands of large CA employers that have or are currently relocating to Texas) True or False