Refer to the figure above. Quota rents equal
A) $2000.
B) $5000.
C) $6000.
D) $10000.
C
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When the marginal rate of return expected from a purchase of equipment is less than the market interest rate, then the firm should
a. seek government assistance in decreasing the market interest rate b. inform stockholders that the company can expect increased earnings from the purchase c. either purchase or not purchase the equipment depending on the marginal resource cost of the equipment d. purchase the equipment e. not purchase the equipment
Which term is used to describe equilibrium at a level of output above potential GDP?
a. Recessionary gap b. Inflationary gap c. Deflationary gap d. Keynesian gap
Over the last several years and until recently, the United States has had lower unemployment rates than most European countries
a. True b. False Indicate whether the statement is true or false
I recently had the electric company install a device to turn off my air conditioner for brief periods during time of excessive heat. They pay me $8 a month for permission to do that. Why would a firm pay me to demand less of their product?
What will be an ideal response?