Suppose the production of paved roadways can be represented as q = L0.5 + K0.5. Which of the following statements is (are) TRUE?
A) Labor is subject to diminishing marginal productivity in the short run.
B) Labor and capital are imperfect substitutes.
C) The isoquants for paved roadways are convex.
D) All of the above.
D
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Imagine that encryption and related technologies become so advanced that the knowledge produced by research and development are as excludable as any other good, while technology remains nonrival
In a world in which technology is both nonrival and excludable, do the government policies of government spending on R&D, tax incentives for R&D, and patents continue to make sense?
Refer to the table below. If these are the only three price options for a bushel of corn, what is the expected value of the price of a bushel of corn?
The above table provides the possible prices for a bushel of corn next year along with the associated probabilities (in percent).
A) $2.50
B) $2.78
C) $2.25
D) $3.00
Government often finds it difficult to cope with externalities because
A. costs and benefits are difficult to assess in monetary terms. B. taxes and subsidies are ineffective in equating MSC and MSB. C. government has no authority to impose fines for air and water pollution. D. marginal private cost curves cannot be shifted.
Change in Demand
What will be an ideal response?