The government of Southland wants to improve resource allocation in the country. Which of the following actions by the Southland government is most likely to accomplish this?
A) Promising to cover every risk of loss for private firms.
B) Weakening enforcement of laws and contracts.
C),Coercing all firms to innovate and invest.
D)Taxing polluters and subsidizing firms that are creating significant positive externalities.
D)Taxing polluters and subsidizing firms that are creating significant positive externalities.
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If the Japanese yen appreciates from $0.01 per yen to $0.02 per yen, the U.S. dollar depreciates from ________ per dollar to ________ per dollar
A) 100¥; 50¥ B) 10¥; 5¥ C) 5¥; 10¥ D) 50¥; 100¥
The minimum efficient scale of a firm:
A. is realized somewhere in the range of diseconomies of scale. B. occurs where marginal product becomes zero. C. is in the middle of the range of constant returns to scale. D. is the smallest level of output at which long-run average total cost is minimized.
When a good is illegal, the supply curve is likely to be inelastic because
A. the difficulty of expanding operations as price rises because of the increased likelihood of capture. B. extra costs associated with avoiding capture. C. the ease of finding new buyers without getting caught. D. the ease with which sellers can expand operations into new territory when price rises.
To compete in the automobile market, Tesla must make many strategic decisions such as whether to introduce a new car model, how to sell and service its cars, and where to advertise. At Tesla's Fremont, California plant, managers must decide on the
monthly production quantities of their S and X models. In making this decision, the managers A) face no trade-off because the Fremont plant only produces these two models of the many Tesla models produced worldwide. B) face a trade-off, because producing more of one model means producing less of the other. C) will choose to only produce the quantity of S and X models where marginal cost equals zero. D) will always decide on production quantities in which revenues are maximized.