If marginal cost is rising in a competitive firm's short-run production process and its average variable cost is falling as output is increased, then which statement is true?
a. Marginal cost is above average variable cost.
b. Marginal cost is below average fixed cost.
c. Marginal cost is below average variable cost.
d. Average fixed cost is constant.
c. Marginal cost is below average variable cost.
In this situation, marginal cost is below average variable cost.
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Suppose a heath care provider wants to ensure that its family doctors are offering patients referrals to specialists when appropriate. Offering referrals makes the doctors' work longer as they need to complete considerable paper work. Because the managers of the health care provider cannot monitor doctors during patient visits, the managers require that each doctor refers at least 40 percent of
their patients to a specialist each month or face a fine. If less than 40 percent of the patients actually need a referral to a specialist, this policy will result in all of the following occurring except which one? A) Patients who need to see a specialist and might not have otherwise received a referral are now likely to receive a referral. B) Doctors' time will be wasted completing unnecessary paper work. C) Patients who do not need to see a specialist will be referred to one. D) The doctor turnover rate at this health care provider should decrease.
According to the Black-Scholes formula, the price of a European call option depends on its strike price, the current price of the underlying asset, the volatility of the underlying's price, the time to expiration, and the interest rate
Indicate whether the statement is true or false
Which of the following statements best describes allocative efficiency?
a. As additional increments of resources are added to producing a good or service, the marginal benefit from those additional increments will decline. b. when it is impossible to produce more of one good (or service) without decreasing the quantity produced of another good (or service) c. when a country can produce a good at a lower cost in terms of other goods; or, when a country has a lower opportunity cost of production d. when the mix of goods being produced represents the mix that society most desires
Which of the following is equivalent to the trade deficit?
a. Imports ? exports b. Net capital inflow c. Exports + imports d. Net exports - imports e. Exports ? imports