Private entrepreneurs are likely to make better investment decisions than central planners because
What will be an ideal response?
the entrepreneurs who make mistakes must bear the costs of these mistakes personally.
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A perfectly elastic demand curve is represented by a vertical line
a. True b. False Indicate whether the statement is true or false
Suppose a fishing boat reaches its most productive use of each person's talent with 15 crew members. More than 15 workers would cause overcrowding. If there are only 10 crew members currently on the boat, adding one more crew member will
a. require the owner to add another boat b. increase the level of labor productivity c. have no effect on labor productivity d. reduce the need for other variable inputs such as fuel e. reduce the total variable cost of operating the fishing boat
A survey of income by county revealed that four of the five wealthiest counties were located in the suburbs surrounding Washington, D.C. Why?
A producer tries to maximize profits by operating at an output where:
a) MC equals price. b) Price minus ATC is greatest. c) MR is greater then MC. d) the profit per unit is greatest.