Why does the commercial value of ivory threaten the elephant, while the commercial value of beef protects the cow?
Elephants are a common resource, whereas cows are a private good. Poachers have a strong incentive to kill as many elephants as they can find, while ranchers have a strong incentive to maintain the cattle population on their ranches.
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Celebrity endorsements are often used by monopolistically competitive firms to boost the reputation of the product that is being endorsed
a. True b. False Indicate whether the statement is true or false
If a monopoly firm reduced the price of its product, which of following must have been true?
a. MR > MC b. MR < MC c. MR > AR d. MC > AR
At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology. Yet many economists believe that patents generate growth. Explain why
If an additional worker costs you $15 per hour and can add 10 units per hour of output to the firm, you should hire that person as long as
A. demand for your product is increasing and you sell in a competitive market. B. the product price is at least $1.50. C. the value of marginal product is between $10 and $14. D. the marginal product of the worker is greater than the value of the marginal product.