In the short run a manufacturing firm's production equipment is a sunk cost.
Answer the following statement true (T) or false (F)
True
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Distribution is a major question to be answered by any economic system.
Answer the following statement true (T) or false (F)
Which of the following is correct about natural monopoly?
a. Natural monopoly exists when a firm has an upward-sloping long-run average cost curve. b. A natural monopoly arises if a particular firm is able to sell each unit of its output at a different price. c. A natural monopoly arises when a single firm has a cost advantage over smaller potential entrants. d. A natural monopoly is created by government patents, licenses, and legal barriers to entry.
Justin and Maria work at a restaurant. Justin can make either 10 pancakes or 4 waffles; Maria can make either 8 pancakes or 2 waffles. According to this scenario, the opportunity cost of making one waffle for Maria is
A. 1/4 pancake. B. 4 pancakes. C. 2/5 pancake. D. 2 1/2 pancakes.
When the dollar appreciates, the cost to Americans of foreign goods
A. rises and the CPI falls. B. rises and the CPI rises. C. falls and the CPI rises. D. falls and the CPI falls.