Two companies, Dirty Inc. and Filthy Inc., each of which has access to 5 different production processes, each of which has a different cost and produces a different amount of pollution. The daily costs of the processes and the number of tons of smoke emitted are shown in the table below.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Dirty Inc. ($/day)$100$200$380$740$1,460Cost to Filthy Inc. ($/day)$400$430$490$580$700 If pollution is unregulated, then a total of ________ tons of smoke will be emitted each day.
A. 1
B. 2
C. 8
D. 4
Answer: C
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Schleppsi, a soft drink maker, is a monopsonist in the county where it manufactures all of the Diet Schleppsi it produces. Suppose the current daily labor cost to the firm is $35,000 with 99 workers and the total wage cost with 100 workers would be $36,000 . What will the market wage be if Schleppsi hires the 100th worker?
a. $35. b. $36. c. $100. d. $350. e. $360.
Economic research indicates that sports franchises are excellent means by which to stimulate local economic growth.
Answer the following statement true (T) or false (F)
Perfectly competitive firms:
A. are individually able to influence the market price. B. are price takers, since they are not large enough to influence the market price. C. will succeed by charging a price higher than that charged by the rest of the market. D. can influence the prices of other firms in the same industry by altering their own prices.
The production possibilities curve for the nation of Economania shifts to the right. This could have been caused by:
A. a decrease in Economania's capital stock. B. technological innovation in the production of Economania goods. C. high unemployment in Economania the previous time period. D. Economania producing all consumer goods in the previous period.