When a resource is being depleted and becomes scarce, the market’s way of encouraging conservation is for the price of the resource to rise, without any government intervention.
Answer the following statement true (T) or false (F)
True
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Sporto Auto Company manufacturers each of the aluminum engines used in their cars, and there is no outside market for these engines. Suppose the marginal cost of producing the aluminum engines is constant at all quantities
What happens to the optimal transfer price and the quantity of cars produced if the cost of assembly increases? A) Price and quantity increase B) Price and quantity remain the same C) Price and quantity decrease D) Price remains the same and quantity decreases
Luke realizes that his space taxi service is operating in the region of diminishing marginal product. As he provides more taxi service in the short run, what will happen to the marginal cost of providing the additional service? a. It is impossible to say anything about marginal cost with the information provided. b. Marginal cost will decrease
c. Marginal cost will increase. d. Marginal cost will stay the same.
Consider the following scenario: The Kellogg's facility buys corn and makes boxes of cornflakes. The grocer buys those boxes and places them on the shelf. A mother then buys a box for her family. Which of the following would be classified as a purchase of a final good?
What will be an ideal response?
Suppose home builders figure out how to produce houses faster by pre-fabricating more of the house in a factory, then transporting the components to the construction site. This saves labor time and prevents materials from being wasted. Which type of innovation is this?
A. Basic research B. A productivity-enhancing innovation C. A quality-of-life innovation D. The creation of new goods and services