The more variable a firm's demand, the ________ the loss from uncertainty, which means the firm has ________ to gain from a forecast.

A) smaller; less
B) smaller; more
C) larger; less
D) larger; more


D) larger; more

Economics

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The maximum price that a buyer is willing to pay for a good measures his

A) producer surplus. B) willingness to pay. C) consumer surplus. D) marginal benefit.

Economics

The long-run average cost curve is tangent to the minimum point of every short-run average total cost curve

a. True b. False

Economics

All of the following are examples of public goods that government has assumed responsibility for over the years except

a. national parks b. interstate highways c. sewage systems d. street lighting e. stock exchanges

Economics

Labor taxes may distort labor markets greatly if

a. labor supply is highly inelastic. b. many workers choose to work 40 hours per week regardless of their earnings. c. the number of hours many part-time workers want to work is very sensitive to the wage rate. d. "underground" workers do not respond to changes in the wages of legal jobs because they prefer not to pay taxes.

Economics