The government authorized $10 million to build bridges on an interstate. After $8 million were spent, serious engineering flaws were discovered. At that point, experts testified that the government must authorize another $10 million in funding to make the bridges safe, bringing the project's total cost to $20 million. The government should authorize the additional funding as long as the benefits from the completed bridges exceed
a. $10 million.
b. $12 million.
c. $18 million.
d. $20 million.
b. $12 million.
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Collusion among oligopolistic firms
A. is common in world markets, but does not happen in the U.S. B. becomes easier during a recession when sales are falling. C. becomes more difficult if the firms all have different cost and demand curves. D. becomes more difficult if there were fewer firms in the group.
International capital mobility refers to
A) the ease with which manufacturing equipment can be transported across countries. B) the ease with cash may be transferred from one country to another without having to be converted into a foreign currency. C) the ease with which investors move funds among international financial markets. D) the ease with which exchange rates may be adjusted to reflect changes in the relative economic strengths of countries.
An industry that has many firms producing differentiated products is classified as ______________.
Fill in the blank(s) with the appropriate word(s).
Firms in the long run do not experience diminishing marginal returns. Then why do some industries have upward-sloping long-run supply curves?
What will be an ideal response?