When costs spill over to third parties, there is a(n)
A. negative externality.
B. cost overrun.
C. government subsidy.
D. excessive competition.
Answer: A
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Explicit costs include
a. monitoring expenses incurred by the government b. enforcement costs paid by the public sector c. compliance costs incurred by all economic sectors d. all of the above e. none of the above
The 2001 recession was caused principally by
A) a slowing in the growth of the money supply. B) a drop in autonomous consumption spending. C) a decrease in government spending. D) a drop in real business investment.
If a firm faces a price of $12 regardless of how many units it produces and the marginal cost is constant at $10 regardless of how many units it produces, then theoretically, the firm should never stop producing
Indicate whether the statement is true or false
Which statement is true?
A. Most firms in the United States are perfect competitors. B. In order for perfect competition to exist there must either be many firms in the industry or all firms must make an identical product. C. The perfect competitor never produces at the minimum point of her ATC. D. None of the statements are true.