Which of the following explains why big business typically spends more on rent-seeking activities than consumers?
A. Lobbying is a public good to consumers.
B. Lobbying is a public good to businesses and labor unions in the involved firms.
C. Labor unions in the involved firms.
D. Lobbying is a public good to businesses.
Answer: A
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Answer the following statements true (T) or false (F)
1. In the short run, each firm is free to vary its maximum capacity. 2. A large number of buyers is an assumption of perfect competition. 3. As long as economic profits are being made, new firms will enter a perfectly competitive industry. 4. Under conditions of perfect competition, if a firm is suffering a loss but AR is above AFC, the firm should always continue to operate. 5. Any time market price is below AVC for all output levels, the firm can reduce its losses by shutting down.
If e = 0.125, c = 0.08, and D = 720, the total demand for high-powered money is
A) 32.4. B) 3512.20. C) 572.4. D) 147.6.
How is a financial crisis like a power blackout?
What will be an ideal response?
Output for a simple production process is given by Q = 2KL, where K denotes capital, and L denotes labor. The price of capital is $25 per unit and capital is fixed at 8 units in the short run. The price of labor is $5 per unit. What is the variable cost of producing 80 units of output?
A. $25 B. $85 C. $33 D. $200