If the slope of the indifference curve for goods X and Y is -2, then the marginal rate of substitution is
A. 0.
B. 1/2.
C. 2.
D. infinite.
Answer: C
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A firm will find it profitable to hire workers up to the point at which their
A. marginal resource cost is equal to their MRP. B. MP is equal to their MRP. C. marginal resource cost equals their wage rate. D. wage rate equals product price.
Nonexcludability is a feature of
A) goods but not services. B) all nonrival goods. C) goods with an external cost. D) public goods.
The lack of long-term economic development prevalent among many LDCs is evidence that relatively efficient economic markets may lead to socially undesirable outcomes
Indicate whether the statement is true or false
Natural monopoly exists when:
A. one firm can supply the entire quantity demanded at higher cost than two or more firms. B. the long-run average cost curve exhibits constant returns to scale. C. one firm can supply the entire quantity demanded at lower cost than two or more firms. D. one firm can supply the entire quantity demanded at the same cost as two or more firms.