Concerned that its dependence on sales of microprocessors to computer firms would make it vulnerable to sharp sales declines during the recession of 2007-2009, Intel began to develop memory chips that could be used in portable consumer electronic devices such as cell phones. One reason that Intel chose to branch out from producing microprocessors for computers is that
What will be an ideal response?
computers are durable goods and spending on computers follows the business cycle
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Consumers expect that the price of a gallon of gasoline will rise next week. As a result
A) today's supply of gasoline increases. B) today's demand for gasoline increases. C) the price of a gallon of gasoline falls today. D) next week's supply of gasoline decreases.
When the government produces and sells water, some of the revenues earned represent taxation
a. True b. False
In the short run, if a perfectly competitive firm is unable to earn a profit, it will seek out the quantity of output where: a. its costs of production are minimum
b. its losses are the smallest. c. its price is greater than its marginal revenue. d. its price is the lowest compared to its competitors.
The tragedy of the commons is the:
A. depletion of a common resource due to individually rational but collectively inefficient overconsumption. B. notion that common resources are generally underconsumed and therefore not produced by suppliers due to artificially low demand. C. disappearance of certain markets due to the lack of willingness to pay by individuals, leading to collective misfortune. D. undersupply of a public good due to people not wanting to pay for a publicly common good.