Refer to the scenario above. People will earn a net benefit of ________ if the discount weight of the future benefit is 1/10
A) 950 utils
B) 930 utils
C) -600 utils
D) -950 utils
C
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Decreasing returns to scale
A) indicate that an increase in all inputs by some proportion will result in a decrease in output. B) must always occur at some point in the production process. C) are directly related to the law of diminishing returns. D) All of the above are true. E) None of the above is true.
When a strategy is the best one to follow no matter what strategy other players choose, it is called a:
A. golden decision. B. dominated strategy. C. dominant strategy. D. zero-sum strategy.
When demand is perfectly elastic:
a. the demand curve is vertical. b. the demand curve is horizontal. c. consumers do not respond to price changes. d. suppliers do not respond to price changes.
Markets for pollution rights:
a. have never been tried in the United States
b. assign property rights to those who value them least
c. allow the government to assign property rights
d. enable those who value them most to pollute
e. are less efficient than pollution standards