Suppose a firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which of the following statements is definitely true?
A. The firm will earn positive accounting and economic profits
B. The firm will face accounting and economic losses
C. The firm will face an accounting loss, but earn positive economic profits
D. The firm may earn positive accounting profits, but will face economic losses
D. The firm may earn positive accounting profits, but will face economic losses
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Refer to Figure 10.1. The dominant strategy for ________ is to contribute
A) Daisy B) Bo C) Luke D) none of the above
A problem in identifying poverty is that the concept of what constitutes a basic need is always changing
Indicate whether the statement is true or false
E-cash cards are considered a major portion of the modern money supply
a. True b. False Indicate whether the statement is true or false
Individuals derive utility from picnics, p, and kayak trips, k. Assuming that an individual's utility is U(p,k) = k0.5p0.5 and income is $100, what is the marginal rate of substitution (MRS) between picnics and kayak trips?
A) MRS = 1. B) MRS = -1. C) MRS = -1/2 D) There is no substitution because picnics and kayak trips are perfect complements.