What does it mean to say that we are running out of "cheap oil"? What does this imply for the price of oil in the future?
What will be an ideal response?
To say that we are running out of "cheap oil" means that much of the oil that is needed to meet the demand for oil in the future is relatively expensive to find and extract. This suggests that the price of oil will increase in the future. There is an enormous amount of oil under the surface of the earth, but for firms to profitably drill for oil, the price of oil needs to be high enough to pay for the costs of drilling.
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Perfect price discrimination:
A. minimizes producer surplus. B. maximizes consumer surplus. C. requires each customer to pay exactly his or her willingness to pay. D. is not efficient.
Productive efficiency refers to long-run market conditions where marginal cost is equal to marginal revenue.
Answer the following statement true (T) or false (F)
For a given real exchange rate, a nominal appreciation of the domestic currency will result from
A) a decline in the terms of trade. B) an increase in the price of the foreign good. C) an increase in the price of the domestic good. D) an increase in the domestic rate of inflation.
All of a firm's inputs are considered to be variable in the long run
a. True b. False Indicate whether the statement is true or false