According to the above figure, if steel mills ignore the cost of pollution, then the supply curve will
A. remain at S1.
B. shift from S2 to S1.
C. shift from S1 to S2.
D. shift either to the left or the right, but it is impossible to say without more information.
Answer: A
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Open market sale will result in:
A) increase in bank reserves and a decrease in the federal funds rate. B) increase in bank reserves and an increase in the federal funds rate. C) decrease in bank reserves and a decrease in the federal funds rate. D) decrease in bank reserves and an increase in the federal funds rate.
The opportunity cost of any action is
a. irrelevant to economic theory b. limited to the out-of-pocket cost incurred c. the sunk cost plus the markup on materials and labor d. what we gain in the process of consumption e. what is sacrificed to pursue that action
Suppose a firm operates in the short run at a price above its average total cost of production. In the long run the firm should expect
a. new firms to enter the market. b. the market price to rise. c. its profits to rise. d. Both b and c are correct.
A student in a managerial economics class calculated the four-firm concentration ratio and HHI for industries A and B. What is the proper conclusion she can draw from the following findings? Industry AIndustry BFour-firm C0.91HHI3,2002,500
A. C4 is higher for industry A while the HHI is higher for industry B. This inconsistency must be due to a calculation error. B. Industry B is a monopoly. C. The market power of firms in industry A is greater than that in industry B. D. Neither industry is perfectly competitive.