A perfectly competitive firm has a random marginal cost with a 30 percent chance of a high marginal cost of $50 and a 70 percent chance of a low marginal cost of $40. What is the firm's expected marginal cost?
A) $48
B) $46
C) $43
D) $45
C) $43
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Bureaucratic overprovision of a public good could occur because
A) of a failure of minimum differentiation. B) of rational ignorance among voters. C) voters want more of the good than do bureaucrats. D) bureaucrats attempt to maximize efficiency.
As a firm increases its output in the short run,
a. it also varies its technology b. it increases all of its inputs c. it increases its plant size d. it increases only one of its inputs e. at least one of its inputs is fixed
Which group of American-born workers is most affected by immigrants entering the U.S. labor force?
a. High school students b. Blue collar workers c. Skilled trades workers d. White collar workers
Double taxation of corporate earnings
a. tends to restrict the activities of corporate firms. b. causes stockholders to earn a lower return than they would on other securities of comparable risk. c. results in more investment in research and development. d. All of the above are correct.