User cost is equal to ________
A) interest cost plus the expected rate of change in the real price of capital plus depreciation
B) interest cost minus the rate of depreciation
C) interest cost minus the expected rate of change of the real price of capital plus depreciation
D) interest cost plus depreciation
C
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According to _________, liberal programs survive attempts by conservative administrations to eliminate them because of the "tyranny of the status quo."
a. Arthur Schlesinger, Jr. b. Wagner's Law c. Milton and Rose Friedman d. Robert Higgs
Examples used in the text to illustrate "competition among the few" include all of the following industries except
a. cereal b. airline c. fish d. automobile e. baby food
Consumer surplus can be measured as the area between the demand curve and the equilibrium price
a. True b. False Indicate whether the statement is true or false
Refer to Scenario 9.1 below to answer the question(s) that follow. SCENARIO 9.1: Amy borrowed $20,000 from her parents to open a bagel shop. She pays her parents a 5% yearly return on the money they lent her. Her other yearly fixed costs equal $9,000. Her variable costs equal $30,000. In her first year, Amy sold 40,000 dozen at a price of $1.50 per dozen. Refer to Scenario 9.1. Amy's profit is
A. $0. B. $20,000. C. $30,000. D. $50,000.