Transfer earning is the minimum amount that has to be paid to a factor to allocate it in its next best alternative use
a. True
b. False
Indicate whether the statement is true or false
True
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In the short run, if the average cost curve is shown as decreasing, it is because
A. fixed cost is spread out over larger amounts of production. B. it becomes cheaper to produce an infinite amount of goods. C. additional units of production are inferior. D. variable costs increase with each additional amount of production.
As a manager holding an auction with correlated or common values, you want buyers to place bids that are ________ their estimated valuations and sellers to place bids that are ________ their estimated costs.
A) close to; close to B) close to; far from C) far from; close to D) far from; far from
Suppose Country A collectively enjoys monopsony power in Good X. If Country A imposes a tariff on the imports of Good X, the world price of Good X will
A. remain unaffected. B. rise. C. become equal to the tariff-inclusive price in Country A. D. fall.
If the aggregate demand curve shift rightward less than expected...
What will be an ideal response?