Refer to the graph below. It shows the cost curves for a competitive firm. If the market price falls to $0.55, the optimal output rate is:
A. 0
B. 15
C. 20
D. More than 20, but less than 35
A. 0
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If a non-renewable resource is scarce, has constant marginal cost of production, and is sold in a competitive market,
A) its price will increase over time. B) its price will exceed marginal cost. C) its price will increase by the rate of interest. D) All of the above.
Tom is maximizing utility by buying three packs of bubble gum and four packages of Skittles. Given diminishing marginal utility, if the price of Skittles rises, the principle of rational choice tells us that Tom will buy:
A. more Skittles, raising the opportunity cost of not consuming Skittles. B. fewer Skittles, lowering the opportunity cost of not consuming Skittles. C. fewer Skittles, raising the opportunity cost of not consuming Skittles. D. more Skittles, lowering the opportunity cost of not consuming Skittles.
Which one of the following statements about the United States is true?
A. The United States has experienced inflation every year since 1800. B. Prior to World War II, the United States experienced deflation virtually every year; since World War II, the United States has consistently experienced inflation. C. Prior to World War II, the United States experienced periods of both deflation and inflation. D. Since World War II, the United States has experienced deflation.
Ethics codes in corporate life tend to emphasize (a) compliance with laws and regulations, (b) honesty and integrity, and (c) avoidance of conflicts of interests. Which one is the most important in today's world? How does economics help in understanding its importance?
What will be an ideal response?