If the market price is $5 and you are currently producing at a level where average total cost is $3 and falling, you should
a. b or c, it doesn't matter
b. shut down
c. produce only enough to cover variable costs
d. produce where MR = MC
e. produce until the average total cost and average revenue are equal
D
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Assume two nations are involved in an arms race. They both assume that each faces two choices – sign disarmament accord or continue with military expansion and the building of more nuclear missiles
Explain using the prisoner's dilemma model why both of these nations will choose to escalate the arms race rather than choose bilateral disarmament. During the Cold War President Ronald Reagan was quoted as saying that the United States will "trust, but verify" when discussing nuclear nonproliferation agreements between the U.S. and the Soviet Union. How does this relate to your answer to the first part of this question?
Medicare subsides will cause people to
A. consume more medical services than in the absence of the subsidies. B. consume the same amount medical services as they would if there were no subsidies. C. be sicker because of inferior care. D. consume less medical services than in the absence of the subsidies.
You enter a classroom, which is littered with newspapers. This is because
A) students are too lazy to clean up. B) maintenance people only clean once a day. C) it is a way to protest against the tuition rates. D) students do not pay for littering.
For ________ goods, market demand is the horizontal summation of individual demand curves and for ________ goods, market demand is the vertical summation of individual demand curves.
A. nonexcludable; excludable B. nonrival; rival C. public; private D. private; public