When economic profits are negative, accounting profits could be:
A. positive.
B. negative.
C. zero.
D. All of these are possible.
D. All of these are possible.
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Which of the following is a necessary condition for successful price discrimination?
A) The seller must possess market power. B) Transactions costs must be zero. C) The buyer must possess market power. D) Buyers must have identical inelastic demands.
Lectures in microeconomics can be delivered either by an instructor (labor) or a movie (capital) or any combination of both. Yet the it gets harder and harder to substitute more movies for an instructor the more movies are already used
Which graph in the above figure best represents the isoquants for lectures in microeconomics when Capital per day is on the vertical axis and Labor per day is on the horizontal axis? A) Graph A B) Graph B C) Graph C D) Graph D
If the government overcorrected in a situation of external costs a. More than the efficient amount of the good would end up being produced
b. Less than the efficient amount of the good would end up being produced. c. It would result in a welfare cost in that market that was bigger than the initial welfare cost. d. Both a and c are would result.
If the marginal propensity to save of an economy is 0.4, then the simple spending multiplier is: a. 2.5
b. 0.6. c. 1.67. d. 1.