Smith' s construction of an 8-foot fence around his property will block his neighbor Johnson's scenic view. If Smith constructed a 6-foot fence, Johnson's view would not be blocked. If Johnson values his view at $1,000 and Smith values the extra 2 feet of fence at $500, then a possible resolution is that
a. Johnson makes a side payment to Smith of $750 not to build the fence so high.
b. Johnson makes a side payment to Smith of less than $500 not to build the fence so high.
c. Smith makes a side payment of $750 to Johnson to live with the fence.
d. Smith makes a side payment of over $1000 to Johnson to live with the fence.
a. Johnson makes a side payment to Smith of $750 not to build the fence so high.
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The profit-maximizing firm should lay off workers when: a. MRC < MRP
b. MRC > MRP. c. MRC = MRP. d. the MP of labor begins to diminish.
Most corporations do not pay back their debt
a. True b. False
The long-run supply curve of a perfectly competitive industry is horizontal
a. in an increasing-cost industry b. in a decreasing-cost industry c. if the short-run supply curves for firms are upward-sloping d. if the short-run market supply curve is negatively sloped e. in a constant-cost industry
Nicole has just finished high school and started looking for her first job, but has not yet found one. As a result, the unemployment rate
a. increases, and the labor-force participation rate is unaffected. b. increases, and the labor-force participation rate increases. c. is unaffected, and the labor-force participation rate increases. d. increases, and the labor-force participation rate decreases.