Which of the following is the most likely candidate for a decreasing-cost industry?
a. airlines
b. oil
c. construction
d. computers
d
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In a perfectly competitive industry, i. entry by new firms shifts the market supply curve rightward. ii. exit by existing firms shifts the market supply curve leftward. iii. at all times existing firms make only zero economic profit
A) ii and iii B) ii only C) i and iii D) i and ii E) i, ii, and iii
If a firm's marginal costs ________ then its ________
A) fall; best-response curve shifts B) rise; forced out of the oligopoly C) rise; output increases D) fall; price falls
Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing one cuckoo clock in the United States is ________, and the opportunity cost of producing one cuckoo clock in Switzerland is ________
A) 3 movies; 1.33 cuckoo clocks B) 0.33 movies; 0.67 cuckoo clocks C) 0.67 movie; 1.5 movies D) 1.5 movies; 0.67 movie
Imagine Tom's annual salary as an assistant store manager is $30,000, he owns a building that rents for $10,000 yearly, and his financial assets generate $1,000 per year in interest. One day, after deciding to be his own boss, he quits his job, evicts his tenants, and uses his financial assets to establish a bicycle repair shop. To run the business, he outlays $15,000 in cash to cover all the costs involved with running the business, and earns revenues of $50,000. What are Tom's accounting profits?
A. $50,000 B. -$6,000 C. $24,000 D. $35,000