Allocative efficiency
a. is important for economic theory but not relevant to environmental policy
b. calls for the equality of additional benefits and additional costs
c. is automatically achieved when cost-effectiveness is achieved
d. requires that the total costs to society linked to environmental policy are equivalent to the associated total benefits
b. calls for the equality of additional benefits and additional costs
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So long as production in the oligopoly still occurs, recurring fixed costs have no impact on output under Cournot competition but do have an impact under Bertrand competition.
Answer the following statement true (T) or false (F)
Compared to a situation in which there is no change in the value of the dollar relative to the peso, in which of the following situations would you be worse off?
A) you borrow $10,000, you earn income in pesos, the dollar appreciates against the peso, you must pay back the loan in dollars B) you borrow $10,000, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in dollars C) you borrow 10,000 pesos, you earn income in dollars, the dollar appreciates against the peso, you must pay back the loan in pesos D) you borrow 10,000 pesos, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in pesos
The abnormal net income model
A) assumes that economic profits cannot be earned in the short run. B) assumes that economic profits cannot be earned in the long run. C) employs economic profit in its valuation of a firm. D) none of these choices.
Productivity of an input is the amount of output produced per unit of input.
Answer the following statement true (T) or false (F)