Exit from a market will stop when
A) accounting losses are zero.
B) the cost of capital is equal to the risk-free rate of return.
C) economic losses are zero.
D) none of these choices.
C
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Consider the two graphs above. Suppose producers forecast a decrease in sales. This would ________ the desired level of inventories, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
Find the cost effective allocation of abatement across the two sources that also satisfies the 40 percent aggregate abatement level. Support with calculations.
Suppose that there are only two stationary sources in a given air quality region. The first source has been in existence for several years, while the second source is new. The following functions represent marginal abatement costs (MAC) for each polluting source: MACEX = 10.0 + 0.7A EX, MACN = 9.2 + 0.5A N, whereAEX is the percentage abatement level for the existing source, and AN is the percentage abatement level for the new source. Assume that the aggregate abatement standard (i.e., for the region as a whole) is set at 40 percent and that the two firms’ current abatement levels areAEX = 10 and AN = 30.
Which statement is true?
A. College graduates earn much more than high school graduates mainly because of what they learn in college. B. The bulk of all property income goes to the middle class. C. Most government transfer payments go to the poor. D. The bulk of all property income goes to the rich.
Which of the following explains the changes in the U.S. adult male labor force participation rate since 1948?
A) More men are joining the military as compared to the past. B) More men are retiring later in life as compared to the past. C) Fewer men consider themselves discouraged workers as compared to the past. D) Younger men are remaining in school longer as compared to the past.