Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Mike's opportunity cost of producing one pound of cheese is ________ car(s).
A. 1/500
B. 1/10
C. 1/250
D. 500
Answer: A
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Country A produces 10 chairs and 6 tables using its resources. Country B produces 12 chairs and 18 tables. Determine the comparative advantage and the absolute advantage that both countries enjoy
What will be an ideal response?
The aggregate demand curve illustrates the relationship between ________ and the ________, holding constant all other factors that affect aggregate expenditure
A) the inflation rate; quantity of planned aggregate expenditure B) the price level; quantity of consumption expenditure C) the price level; quantity of planned aggregate expenditure D) the price level; quantity of planned investment expenditure
Which of the following does not hinder successful price leadership?
a. all of the following are correct b. potentially large economic profits due to this activity c. cheating by offering secret discounts d. product differentiation e. illegality of coordinated pricing
A British waste management company acquired two other companies that specialized in disposal of hazardous wastes even though the two companies were losing money. Planning and regulatory requirements in the United Kingdom make it difficult for firms to establish new hazardous waste landfills, and the combined companies would control most hazardous waste landfills in some parts of the country. How do the planning and regulatory requirements affect the market for hazardous waste?
A. They create a burden on the company, and so it probably will lobby to repeal them. B. They help the merged companies because it will be expensive for other firms to enter the market to compete with them. C. They make the market for hazardous waste disposal into a monopolistically competitive market. D. They make the market for hazardous waste disposal into a contestable market.