Which of the following is a valid reason to consider government regulation?
A. Seeking some social objective that markets do not achieve.
B. Fear that capitalism will prove too productive.
C. Desire on the part of government to be useful.
D. Requests for protection for an industry.
E. All of the responses are correct.
Answer: A
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Refer to Scenario 1-3. Using marginal analysis terminology, what is another economic term for the incremental cost of producing the last 400 t-shirts?
A) operating cost B) explicit cost C) marginal cost D) Any of the above terms are correct.
Exhibit 36-2 Stock High Low Close Net chg. Dasher 17.25 16.75 17.00 (A) Dancer 34.85 34.25 (B) +0.25 Prancer 56.50 55.90 56.00 (C) Vixen 65.90 (D) 64.75 -0.75 Refer to Exhibit 36-2. If the closing price of Prancer's stock on the previous day was $55.50, what value goes in blank (C)?
A. +0.75 B. -0.50 C. +0.50 D. +0.25 E. There is not enough information given to answer this question.
A monopolist would not be able to make a positive profit at any price output combination when
A) marginal cost is less than average total cost for one more unit of output. B) the average variable cost curve is everywhere above the marginal revenue curve. C) the minimum point of the average total cost curve lies to the right of the minimum of the average variable cost curve. D) the average total cost curve is everywhere above the demand curve.
Necessities and luxuries are both types of normal goods
a. True b. False