Excess capacity arises when firms cannot sell all of their output at the current market price
a. True
b. False
B
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Refer to Figure 2-13. What is the opportunity cost of producing 1 ton of coconuts in Costa Rica?
A) 3/8 of a ton of pineapples B) 2/3 of a ton of pineapples C) 1 1/2 tons of pineapples D) 100 tons of pineapples
A good salesperson can sell $500,000 worth of goods, while a poor one can sell only $100,000 worth of goods. Job applicants know if they are good or bad, but the firm does not
A firm will offer job applicants a choice between a fixed salary of $10,000 or a 10% commission. Assuming risk-neutral salespersons and no opportunistic behavior, can the firm determine a prospective good salesperson from a poor one? A) Yes, because a poor salesperson will always choose the fixed salary. B) Yes, because a good salesperson will always choose the fixed salary. C) No, because a poor salesperson is indifferent between the two contracts. D) No, because a good salesperson is indifferent between the two contracts.
Which of the following is likely to have the most price inelastic demand?
a. white chocolate chip with macadamia nut cookies b. hardback novels c. salt d. box seats at a major league baseball game
The opportunity cost for a student of attending college for a year is measured by
A. the benefit received by the student. B. the tuition paid for the year. C. the value of the most valued opportunity foregone by attending college. D. the total money outlays associated with attending college.