Refer to the scenario above. Which of the following will happen in this case?
A) Neither of them will make any money.
B) Only Elly will make money.
C) Elly will trust, but her employee will defect.
D) Elly will trust, and her employee will cooperate.
A
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When we choose a particular option, we must give up alternative options. The highest-valued alternative forgone is the ________ of the option chosen
A) opportunity cost B) comparative advantage C) nonmonetary cost D) absolute advantage
"When a third party (for example, an insurance company or the government) pays all or most of the cost of a good or service, the incentive of consumers to shop for the best value per dollar spent and of producers to offer the item at an economical price is substantially reduced." This statement is
a. essentially true. b. false; consumers will still have a strong incentive to search for the most economical price even if someone else is paying the bill. c. false; producers will still have a strong incentive to keep prices low even if consumers are non-responsive to price differences among suppliers. d. false; the party paying for the good will not influence the incentive of either consumers or producers to economize.
For a linear and upward sloping supply curve, when the consumer has to pay a positive price for the good, the variable cost to the consumer is a
A. four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the demand curve. B. four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the supply curve. C. rectangle. D. triangle.
Refer to the above figure. This firm is operating in the
A) long run since economic profits are greater than zero. B) long run since economic profits are less than zero. C) short run since economic profits are greater than zero. D) short run since economic profits are less than zero.