It is a mistake to calculate the cost per mile of owning a car because doing so implies
A) additional driving will lower the cost of owning a car.
B) future fuel and maintenance costs cannot be predicted.
C) marginal costs are the only relevant costs.
D) opportunities will not arise to sell the car.
A
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Answer the following statement(s) true (T) or false (F)
1. Cost-effectiveness requires that resources are allocated such that the additional benefits to society are equal to the additional costs. 2. Assume that the marginal revenue associated with the 12th unit of output is $25 and the marginal cost is $14. As a result, the firm should produce more, because the marginal profit at that output level is greater than zero. 3. When a profit-maximizing firm increases output to Q = 50, its MR= $100 and MC = $124, meaning that total profitfalls by $24, so the firm should contract production. 4. In perfect competition, the firm faces a perfectly inelastic demand. 5. The demand faced by the perfectly competitive firm is perfectly elastic, meaning that price and marginal revenue are equal.
Saving $100 will:
A. increase wealth by $100. B. decrease wealth by $100. C. increase wealth by $100 only if the $100 is used to repay a debt. D. increase wealth by $100 only if the $100 is used to purchase an asset.
If the top personal tax rate is higher than the top corporate rate, high income taxpayers have an incentive to _____
a. incorporate b. save c. engage in tax evasion d. purchase stock
All other things being equal, globalization
A. benefits people whose skills are relatively scarce on world markets, and hurts those whose skills are relatively common. B. benefits countries that have wealthy, highly educated workforces, and hurts countries that have poor, badly educated workforces. C. benefits countries that have relatively low wages, and harms countries that have relatively high wages. D. benefits manufacturing firms and hurts service firms.