Sue's Surfboards is the sole renter of surfboards on Big Wave Island. If marginal revenue is positive at the number of surfboard rentals made each hour, then Sue's Surfboards
A) must face an elastic demand for surfboard rentals.
B) must face an inelastic demand for surfboard rentals.
C) can increase its total revenue by increasing the price of rentals.
D) must face a unit elastic demand for surfboard rentals.
A
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If an economy is operating inefficiently, then
A. the economy can increase production of consumption goods without reducing capital goods. B. there is always a positive opportunity cost to increasing output. C. output can only be increased through capital investment. D. output cannot be increased.
A higher ________ means that an asset's return is more sensitive to changes in the value of the market portfolio
A) alpha B) beta C) CAPM D) APT
Over the past several decades, U.S. firms have faced more competition from overseas firms. Does this have any impact on the market power of U.S. oligopoly firms?
A) no, because domestic firms in oligopoly markets are always so dominant that overseas producers have little or no impact on those markets B) no, because the United States government has effectively blocked all imports that might compete with domestic firms in oligopoly industries C) Yes, competition from overseas firms can substantially limit domestic firms' market power. D) There is no way to know.
If it's possible to eliminate the problems created by externalities, why do they persist?
A. Creating a more efficient solution does not mean it will have a fair distribution of that surplus. B. It can be difficult to coordinate the millions of market participants. C. They can be diffuse, complex, and hard to control. D. All of these statements are true.