If Bob has an absolute advantage over Pete in both typing and woodworking, then Bob also has a comparative advantage over Pete in both activities
a. True
b. False
B
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The total revenue curve of a monopolist is at its maximum point when:
A) marginal cost is zero. B) marginal cost is positive. C) marginal revenue is zero. D) marginal revenue is positive.
In Walnut Creek, California, there are three very popular supermarkets: Safeway, Whole Foods, and Lunardi's. While Safeway remains open twenty-four hours a day, Whole Foods and Lunardi's close at 9 pm. Which of the following statements is true?
A) Safeway can ignore the pricing decisions of the other two supermarkets. B) Safeway is a monopoly all day because it produces a service that has no close substitutes. C) Safeway has a monopoly at midnight but not during the day. D) Safeway probably has a higher markup to compensate for its higher cost of production.
At an interest rate of 6 percent, if an investment project was expected to yield $1,000 per year (to be received at year end) for each of the next three years, profit-maximizing decision makers would undertake the project only as long as the cost remained less than
a. $1,000. b. $2,577. c. $2,673. d. $3,000.
Explicit costs include:
A. variable costs. B. fixed costs. C. out-of-pocket costs. D. All of these are included in explicit costs.