Most economists in the U.S. believe that the price mechanism leads to
A. an efficient allocation of resources.
B. an equitable distribution of income.
C. both an efficient allocation of resources and an equitable distribution of income.
D. neither an efficient allocation of resources nor an equitable distribution of income.
A. an efficient allocation of resources.
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If a firm buys a specialized metal stamping machine that will last 4 years for $125,000 and cannot resell it, the sunk cost is
A) $0. B) $31,250. C) $125,000. D) $93,750.
Which of the following is true?
a. in recent decades, the rich countries of the world have consistently grown more rapidly than poor countries. b. no LDC was able to achieve a more rapid growth rate than the United States during the 1980 through 2005 period. c. during recent decades, most LDCs have stagnated economically. d. during 1980 through 2005, the fastest growing countries in the world were mostly LDCs.
Suits Only, a dry cleaning firm that specializes in cleaning business suits, operates in a perfectly competitive market. Robin Smith, an exceptionally talented manager, has been hired to manage Suits Only. In the dry cleaning business, a manager typically makes a salary of $400 per week. Suits Only faces the long-run average and marginal costs shown in the figure below. In long-run competitive equilibrium, the market price for cleaning a business suit is $4.50.
Given the above, the typical dry-cleaning firm has a minimum long-run average cost of cleaning a business suit equal to ________ and the typical dry cleaning firm earns economic profit equal to
________. A. $2, $2.50 per suit cleaned B. $3, $1.50 per suit cleaned C. $4.50, $0 D. $2, $0
When the federal government crafts environmental policies that make it less expensive for firms to follow green? initiatives