Suppose a hurricane causes a great deal of destruction in Florida. After the hurricane, it takes much longer than usual for the reconstruction to take place. A possible explanation for this is
A) greed by suppliers of construction materials increased.
B) government prevented price gouging during the reconstruction period.
C) prices of construction materials fell in the Midwest.
D) environmental restrictions on lumbering in the Pacific Northwest were relaxed.
B
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Economic Value Added helps firms to avoid the hidden-cost fallacy
a. by ignoring the opportunity costs to using a capital b. by differentiating between sunk and fixed costs c. by taking all capital costs into account including the cost of equity d. none of the above
Which of the following best illustrates a vertical merger
a. GM merges with Chrysler b. Nike merges with Kraft Foods c. Microsoft merges with Dell d. UPS merges with FedEx e. Apple merges with IBM
Which of the following is NOT a characteristic of a constant cost competitive industry? As the industry expands in the long run,
A. input prices remain constant. B. the number of firms remain constant. C. the cost of production remains constant. D. the price of the product remains constant. E. none of the above
Selection bias can distort the results of research studies.
Answer the following statement true (T) or false (F)