Explain why credit cards are not considered money even though people seem to use them like money.
What will be an ideal response?
A credit card isn't money for a few reasons. One, it is not an asset. The use of a credit card actually creates a liability for the user. A credit card is a promise by a bank to lend the cardholder money with which to make purchases. The store supplying the goods being purchased receives money, but the money that is used does not belong to the buyer. The credit card provides the cardholder with access to someone else's money.
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Based on this model, if the government uses a uniform standard
Suppose that two firms, X and Y, face the following abatement costs: MACX = 1.2AX, MACY = 0.3AY TACX = 0.6AX2 TACY = 0.15AY2 Further assume that the combined abatement standard is 40 units for both firms. a. the total abatement cost for firm X is $24 b. the total abatement cost for firm Y is $12 c. the combined total abatement cost for both firms is $1,200 d. the combined total abatement cost for both firms is $300
If a firm wishes to engage in price discrimination, which of the following conditions must be met?
a. The demand curve must be horizontal. b. It must be possible to prevent resale of the good from low-paying to high-paying customers. c. The supply curve must be horizontal. d. Many identical firms in the market must each have a small share of total industry output. e. Price must be less than marginal cost.
With respect to monopolistic competition,
a. both the business-stealing externality and the product-variety externality are positive externalities. b. the business-stealing externality is a positive externality, while the product-variety externality is a negative externality. c. the business-stealing externality is a negative externality, while the product-variety externality is a positive externality. d. both the business-stealing externality and the product-variety externality are negative externalities.
In the event of a detrimental externality that affects the public interest, government action is the only solution.
Answer the following statement true (T) or false (F)