In 1984, British Prime Minister Margaret Thatcher decided to shut down so-called uneconomic coal mines owned by the government. The National Union of Mineworkers protested, asserting that there was enough coal in the mines to continue current levels of production for years. Thatcher implicitly argued that her decision was economically sound because, at any practical level of output, for each “uneconomic” mine,
A. MC > AC.
B. for every input, MPP > APP.
C. MC > MR.
D. AC > MC.
Answer: C
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If an automobile manufacturer has an agreement with its tire supplier, this is an example of a ________ agreement.
A) rightward B) vertical C) horizontal D) leftward
Refer to Figure 9.1. Suppose the market is currently in equilibrium. If the government establishes a price ceiling of $20, consumer surplus will
A) fall by $200. B) fall by $300. C) remain the same. D) rise by $200. E) rise by $300.
Bitcoin is a:
a. Virtual currency that can be converted freely into a wide variety of real-world (legal tender) currencies. b. Virtual currency that keeps track of owners and users by means of a clearing house called Mt. Gox. c. Virtual currency that publishes all Bitcoin-related domestictransactions online but keeps its international transactions confidential. This has led to Bitcoin's widespread use for illegal international (not domestic) transactions. d. All of the statements above are true.
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50The variance in the returns of project B is:
A. 225. B. 1,600. C. 0. D. 900.