There are still some fixed costs in the long run, such as rent.
Answer the following statement true (T) or false (F)
False
The long run is a period of time long enough for all inputs to be varied (no fixed costs); it is long enough for rent contracts to be renegotiated.
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Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan has the comparative and absolute advantage in smoothies. B. Dan has the comparative and absolute advantage in sandwiches. C. Dan has the comparative advantage in smoothies, but Tracy has the absolute advantage in smoothies. D. Dan has the comparative advantage in sandwiches, but Tracy has the absolute advantage in sandwiches.
If the marginal social cost of producing a ton of cement is $4,000 and the marginal private cost is $3,500, then the
A) marginal benefit of a ton of cement will equal $4,000. B) total cost of producing a ton of cement is $7,500. C) marginal external cost of producing a ton of cement is $500. D) marginal external cost of producing a ton of cement is $7,500. E) marginal external cost of producing a ton of cement is $4,000.
What are the primary reasons for and against a policy of "too big to fail."
What will be an ideal response?
A monopsonist's marginal factor cost (MFC) curve lies above its supply curve because the firm must:
a. lower the product price to sell more. b. increase the price of its product to sell more. c. decrease the factor price to hire more. d. lower the factor price to hire more. e. none of these.