A monopsony is a market structure in which there is a
A) single seller.
B) single buyer.
C) price floor set by a regulatory agency.
D) price ceiling set by a regulatory agency.
B
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Specialization and trade
A) does not benefit anyone. B) allows nations to produce inside their individual production possibilities frontier. C) allows nations to consume combinations of products that are outside their individual production possibilities frontier. D) shifts the production possibilities frontier inward. E) shifts the production possibilities frontier outward.
Your firm is evaluating a potential investment in new machinery, but the manager in charge of the project uses an opportunity cost of capital that is too large. How does this error affect the projected net present value of the firm's investment?
A) NPV is overstated B) NPV is understated C) NPV is unaffected D) NPV changes from positive to negative
Jim is planning on attending a football game. He spent $40 on the ticket. He will have to take the day off losing 8 hours of work. His hourly wage is $10 . He estimates it will cost him around $20 for gas and parking at the game. Jim's total economic cost of attending the game equals
a. $80 b. $40 c. $60 d. $140
An economy is producing two goods, ice cream and cookies, and is currently operating efficiently. This economy can produce more cookies if: a. it increases the price of ice cream
b. it increases the price of cookies. c. more of the economy's resources become idle. d. it produces less ice cream.