Which of the following examples would most likely happen in the short run?
a. A supermarket stays open all night because it covers its variable costs and part of its fixed costs.
b. A restaurant stays open for breakfast even though it fails to cover its variable and fixed costs.
c. A driving range stays open all night because it covers some variable costs and no fixed costs.
d. A movie theater stays open for matinees even though it fails to cover any fixed costs.
a. A supermarket stays open all night because it covers its variable costs and part of its fixed costs.
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If Congress reduced the period of patent protection from 20 years to 10 years, what would likely happen to the amount of private research and development?
A. Shorter patent protection would make innovation less lucrative, so the amount of research and development would likely decline. B. Companies would simply stop their research and development. because the cost is not worth the return. C. Companies would spend more on research because the patent period is shorter. D. Companies would not likely change their research and development amounts because they need innovation to survive.
A country that frequently uses capital controls:
A. will attract more investment. B. decreases the risk for foreign investors. C. increases the risk for foreign investors. D. should see lower interest rates on its domestic bonds and lower prices.
The price of imported oil rises. If the government wanted to stabilize output, which of the following could it do?
a. increase government expenditures or increase the money supply b. increase government expenditures or decrease the money supply c. decrease government expenditures or increase the money supply d. decrease government expenditures or decrease the money supply
Which statement is true?
A. As rents rise more marginal land is used. B. As rents rise less marginal land is used. C. Land is basically free. We pay rent for the buildings that are situated on the land. D. None of the statements are true.