Once the marginal product of capital is equal to the real rental cost of capital ________
A) inventories will stabilize
B) depreciation will equal the marginal rate of substitution
C) the economy will reach full employment
D) a profit-seeking firm will stop acquiring capital
D
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In the very short run:
a. new firms may enter an industry. b. existing firms may change the quantity they are supplying. c. price and quantity supplied are absolutely fixed. d. quantity supplied is absolutely fixed.
A physician's office expenses increase 10 percent, so she decides to raise the price of office visits. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice revenues?
a. Office visits and total revenue stay the same if demand is elastic. b. Office visits and total revenue rise if demand is inelastic. c. Office visits and total revenue fall if demand is inelastic. d. Office visits will fall and total revenue will rise if demand is inelastic. e. Office visits will rise and total revenue will fall if demand is elastic.
According to the public interest view, economic regulation is always in the special interest of existing producers
Indicate whether the statement is true or false
Which one of the following statements best describes projected water demands in the coming decades?
a. Global water demand will increase, but agricultural demand will decrease b. Water demand will increase significantly in all countries c. Global water demand will increase mainly due to increased agricultural demand d. Global water demand will increase mainly in developed countries e. Global water demand will remain relatively constant