Sunk costs:
a. are not considered in marginal analysis.
b. help to determine the optimal quantity of an activity.
c. can dramatically increase marginal costs.
d. are the same as variable costs.
a. are not considered in marginal analysis.
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If a bank's net worth is negative, then the bank definitely is
A) liquid. B) insolvent. C) illiquid. D) solvent.
Which of the following models results in the greatest deadweight loss, assuming a fixed number of firms with identical costs and a given demand curve?
A) Cournot B) Stackelberg C) Monopoly D) Perfect competition
In economics, satiation means
A. that quantity demanded and quantity supplied rises. B. that the market price has been attained. C. eventually the marginal value of the good consumed decreases. D. eventually the marginal value of the good consumed increases.
If the GDP deflator is less than 100, which will be higher: nominal GDP or real GDP? Why?
What will be an ideal response?