Suppose the cost of producing two goods, x and y, can be represented as C = ax + by + cxy. If the measure of economies of scope, SC, is zero, then which of the following must be TRUE?
A) a = b
B) a + b = -c
C) c = 0
D) a = -b
C
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The Coase theorem proves that externalities will be neutralized by bargaining
Indicate whether the statement is true or false
Money serves as a store of value, which means:
a. it acts as an intermediary between the buyer and the seller. b. it will still hold its value. c. it is the ruler by which other values are measured. d. it must also be acceptable to make purchases today that will be paid in the future.
Oligopolists almost always cooperate in making price and output decisions.
Answer the following statement true (T) or false (F)
Compared to high-income developed countries, the per person income levels of poorer less developed countries are somewhat understated because
a. the GDP figures omit the production within the household sector, which is generally larger in the high-income countries. b. the GDP figures omit the production within the household sector, which is generally larger in the poorer countries. c. the GDP figures omit net exports, which are generally larger in the high income countries. d. the GDP figures omit net exports, which are generally larger in the poorer countries.