Laura purchased a brand new Pontiac for $20,000. The moment she assumed ownership, and drove it off the lot, its market value immediately fell to $17,500. Is the $2,500 difference in value a sunk cost?
A) No.
B) Yes it is, but only if Laura regrets her decision to have purchased the new Pontiac.
C) Yes it is, but only if Laura receives no compensating benefit from the new Pontiac.
D) Yes it is, but only if Laura decided to immediately resell the car.
E) Yes it is, period.
E
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If Mario's Pizza, Angelo's Pizza, and Bella's Pizza are all competing in the pizza delivery market and Bella's Pizza consistently is the first to change prices, Bella's Pizza might be ________.
A) signaling to the other firms to consistently lower their prices B) signaling to the other firms to consistently raise their prices C) offering to be the price leader D) signaling to the other firms to consistently maintain their prices
Industry X has four firms. The largest firm in Industry X has more than 90 percent of the market share. Industry Y also has four firms, but each of those four firms in Industry Y has 25 percent of the market share
The Herfindahl-Hirschman index will be A) the same for both industries, but the four-firm concentration will be larger for Industry Y than Industry X. B) the same for both industries, but the four-firm concentration will be larger for Industry X than Industry Y. C) larger for Industry Y than Industry X, but the four-firm concentration will be the same. D) larger for Industry X than Industry Y, but the four-firm concentration will be the same.
Comparative advantage is defined as
A) producing all goods at lower opportunity costs than other countries can. B) producing more output of all goods than anyone else can. C) producing one good at a lower opportunity cost than another country can. D) the ability to produce more output from given inputs than anyone else can.
The USDA threshold income level was originally based on the cost of
A. basic clothing. B. a nutritionally adequate food plan. C. housing. D. transportation.