Every year Mary rents a tiller from the local hardware store and turns over the soil in her yard to plant her garden. She decides how big a plot to till and when she is finished, she returns the tiller to the hardware store. From that point on, Mary is operating in the
a. long run because she has designated the size of her plot
b. long run because the growing season is only a few months long
c. short or long run because she can always decide not to plant any vegetables
d. short run because she has chosen her scale of operation
e. short run because once she waters the garden, she cannot get the water back
D
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Refer to the figure above. The region BAH represents the ________
A) consumer surplus after taxation B) tax incidence on consumers C) tax incidence on producers D) deadweight loss due to taxation
Based on Table 3.1, if the world price of computers is four pairs of shoes, then the optimal strategy for each country would be
A) to specialize in shoes. B) to specialize in computers. C) for Mexico to specialize in shoes, and the United States in computers. D) for the United States to specialize in shoes, and Mexico in computers. E) None of the above.
Comparative advantage matters most in determining the efficient distribution of production over the world
a. True b. False Indicate whether the statement is true or false
When deciding whether to hire an additional worker, firms need only consider how the additional worker would affect
a. costs. b. revenues. c. output. d. profit.