Refer to the graph shown. Assuming that the industry operates under conditions of perfect competition and that the firms seek to maximize profits, this firm will:
A. produce 1,200 square feet of construction in the short run.
B. incur economic losses in the short run.
C. produce 800 square feet of construction per month in the short run.
D. produce 1,000 square feet of construction per month in the short run.
Answer: D
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Most economists believe that the market __________ produce nonexcludable public goods because of __________.
A. will; the monetary incentive they have to produce them B. will not; the externality problem C. will not; the free rider problem D. will; the market shortage that often accompanies the production of public goods. E. none of the above
Which of the following would be an economic explanation of how "99ยข pricing" was developed?
a. It was a sales gimmick that sellers used to try to fool their customers. b. It was encouraged by a penny newspaper to increase the number of pennies in circulation. c. It was a scheme to let firms advertise that their prices were under some round dollar figure. d. It was a way of ensuring that sales were recorded on cash registers, thus reducing employee theft.
If the interest rate is 3 percent, the present value of $900 received at the end of four years is:
A. $799.64. B. $873.79. C. $927.40. D. $792.00.
The "bubble concept" as employed by the Environmental Protection Agency
What will be an ideal response?