Suppose chicken farm waste flowed into a river used by a neighbor for drinking water. The results of the Coase theorem s are relevant when the legal rights to the river are given to:
a. the chicken farm.
b. the neighbor.
c. either the chicken farm or the neighbor.
d. neither the chicken farm nor the neighbor
Ans: c. either the chicken farm or the neighbor.
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MacDougall compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the
A) classical theory. B) the Heckscher-Ohlin theory. C) the Linder hypothesis. D) All of the above.
At what price would there be an excess supply of 200 units of the good?
Figure 4-15
Refer to Figure 4-15. At what price would there be an excess supply of 200 units of the good?
Group of answer choices
A. $15
B. $20
C. $35
D. $30
Quickie Inc, a perfectly competitive firm, currently maximizes profit by producing 400 units of output. If its marginal cost is equal to $25 and its average total cost is $20, then how much is it earning in economic profit?
a. Economic profit is always equal to zero in perfect competition. b. $10,000 c. $8,000 d. $2,000 e. $4,000
A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000 while a market researcher receives $20,000. The marginal contribution of engineers and market researchers are:
Based on the above information, how should a manager with an annual budget of $240,000, allocate this budget in order to maximize the number of new products developed?
A. Hire three engineers and five market researchers. B. Hire four engineers and four market researchers. C. Hire five engineers and two market researchers. D. Hire three engineers and four market researchers.