Someone who owns stock in a drug company that suddenly and unexpectedly reveals it has found an effective vaccine against AIDS will make a profit on the stock
A) at once.
B) only if she hangs on to the stock for a number of years.
C) only if she sells the stock.
D) only when the dividends actually start to increase.
E) when total revenue exceeds all costs, including research and development costs.
A
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The technique that estimates long-run costs and the minimum efficient scale by determining the scale of operation at which most firms in an industry are concentrated is called the:
A) engineering estimation technique. B) statistical cost estimation technique. C) survivor approach. D) back-of-the-envelope approach.
If the demand for a good increases, it is likely that the demand for the factors of production used as inputs will:
A. decrease. B. increase. C. stay the same. D. None of these statements is true.
The most volatile component of aggregate demand is
a. consumption spending. b. government spending. c. investment spending. d. net exports.
The budget constraint illustrates all of the combinations of goods and services that the consumer can afford
a. True b. False Indicate whether the statement is true or false