Over the range of output where the slope of the short-run total cost curve becomes steeper:
A. Fixed costs are increasing
B. Marginal cost is increasing
C. Marginal cost is positive, but decreasing
D. Marginal cost is lower than average variable cost
B. Marginal cost is increasing
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The __________ problem in the market for used cars is capable of collapsing the market for __________.
A. adverse selection; good used cars B. adverse selection; lemons C. moral hazard; good used cars D. moral hazard; lemons
How can a warranty at the seller's expense signal that a product is of high quality?
What will be an ideal response?
A U.S.-based multinational has two subsidiaries, one in Lithuania where the tax rate is 15%, and one in Ireland where the tax rate is 2%. The tax rate in the U.S. is 35%
If the Lithuanian-based subsidiary is transferring a good to the Irish subsidiary and the goal is to avoid taxes, it will A) sell it to the U.S. parent at a transfer price equal to marginal cost, which will then sell it to the Irish subsidiary at monopoly level pricing. B) set the transfer price to the Irish subsidiary at the monopoly level. C) set the transfer price to the Irish subsidiary at marginal cost. D) Unable to determine with the information given.
The marginal revenue product of a resource is equal to the value of marginal product when the product produced by the resource is sold in
a. a competitive price-taker market. b. a competitive price-searcher market. c. an oligopolistic market. d. a monopolistic industry.