Suppose a new cost-saving device will forever generate $1,000 net savings per year to a firm. The device costs $10,000. Using the Internal Rate of Return approach, the firm will make the investment
A) definitely.
B) definitely not.
C) if the interest rate exceeds 10%.
D) if the interest rate is less than 10%.
D
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At the market equilibrium, when efficiency is attained, the marginal benefit ________ the marginal cost
A) is equal to B) is greater than C) is less than D) has no necessary relationship with E) is equal to the marginal deadweight loss which is equal to
The federal government pays airlines to service small cities in the United States through a subsidy program called Essential Air Service which was established in 1978 when the airline industry was deregulated
Most subsidies can't exceed $200 per passenger. Without this subsidy, what is TRUE? A) There would be higher prices and fewer flights. B) There would be lower prices and fewer flights. C) There would be an increase in supply. D) There would be a decrease in demand.
If the dollar appreciates, American consumers will buy more foreign goods and services
a. True b. False Indicate whether the statement is true or false
Which of the following factors of production is not variable in the long run?
A. the size of the firm's plant. B. property taxes on the assets of the firm. C. highly trained labor. D. All factors of production are variable in the long run.