As the stock of a depletable resource falls, its user cost
A) rises.
B) falls.
C) is unchanged, but its price rises.
D) is unchanged, but the extraction cost rises.
E) is unchanged, but its true cost rises.
A
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From the economic point of view, "joint costs" are problematic because
A) they can only be determined in markets for illicit drugs. B) there is no way to correctly allocate joint costs. C) they can be measured only by the most sophisticated accounting techniques. D) there is no way to discuss the concept meaningfully.
An increase in the price of inputs used to produce good A will:
a. increase supply, increase price and increase the quantity exchanged. b. increase demand, increase price and increase the quantity exchanged. c. decrease supply, increase price and decrease the quantity exchanged. d. decrease supply, decrease price and decrease the quantity exchanged.
Exhibit 8-5 A firm's MR and MC curves
In Exhibit 8-5, a firm is currently producing 40 units of output. What would you advise this firm to do?
A. Shut down. B. Increase output. C. Decrease price. D. Decrease output.
At the planned output level, short-run average total cost equals long-run average total cost, but at all other points, short-run average total cost is higher than long-run average total cost.
Answer the following statement true (T) or false (F)