The firm should continue investing
A. only as long as its rental cost is greater than the interest rate.
B. up to the point where the MRPK equals its rental cost.
C. even if the MRPK is equal to its rental cost.
D. only as long as the MRPK is less than its rental cost.
Answer: B
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When a production quota is used to remedy the problem of the commons, then
A) the production quota is set so that use of the resource is where marginal private benefit equals marginal private cost. B) the production quota is set so that use of the resource is where marginal social benefit equals marginal private cost. C) the market equilibrium, but not the efficient outcome, is achieved. D) all users of the resource have an incentive to cheat on the quota quantity.
There are no gainers from discrimination
Indicate whether the statement is true or false
Until Congress began to periodically raise benefit levels to adjust for inflation, the first recipients of Social Security checks:
A. lost value over time, because the payments were not adjusted for inflation. B. received a fixed amount that caused their real income to decline. C. grew poorer over time, because the payments were nominal amounts. D. All of these statements are true.
If the supply curve remains constant, an outward shift in the demand curve for a commodity causes the price of factors used in its production to decline
a. True b. False Indicate whether the statement is true or false