Tom & Jerry are running Hanna Barbera's lemonade stand as two profit centers. Tom makes the lemonade while Jerry sells it. Jerry argues that Tom is transferring the lemonade to him priced too high, which forces him to charge the customers a high price, losing sales. Does the decision maker have the information to make a good decision?
a. Yes
b. No
c. Uncertain
d. None of the above
a
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How will an increase in lumber prices influence the home construction market?
a. The demand for newly constructed homes will increase. b. The demand for newly constructed homes will decrease. c. The supply of newly constructed homes will increase. d. The supply of newly constructed homes will decrease.
Labor unions
a. prefer to operate in states with right-to-work laws. b. are similar to cartels. c. play a larger role in the current U.S. economy than in European countries such as Norway and Sweden. d. attract a membership of about 25 percent of current U.S. workers.
After some point successive equal increases in a variable factor of production, when added to a fixed amount of inputs, will result in smaller increases in output. This is known as
A) the long run. B) the law of diminishing marginal product. C) marginal physical product. D) short run average cost.
A characteristic of a public good is
A. clear property rights. B. rival consumption. C. the exclusion principle. D. the free-rider problem.