What is marginal resource cost?
a. the amount that an extra input adds to the firm’s total costs
b. the change in quantity of output resulting from a one-unit change in input
c. the average variable cost of producing one more unit of output
d. the additional income a firm obtains from one more unit of input
a. the amount that an extra input adds to the firm’s total costs
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Health insurance markets are likely to attract a disproportionate number of ________ individuals
A) high-risk B) risk-seeking C) low-risk D) risk-averse
In the saving function, autonomous saving is
A) -a + (1 - c)(Y - T). B) (1 - c)Y. C) -a. D) -Y - T.
The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, deadweight loss occurs because
A) consumers place a greater value on the last apartment unit than the cost to supply it. B) the supplier of the last apartment unit receives a rental price that is less than the marginal cost of supplying it. C) the quantity of apartments supplied has decreased. D) All of the above.
Negative market feedback refers to a tendency for
A) one or two firms in an oligopolistic industry to respond to price decreases by initiating efforts to engage in price leadership. B) a particular product to fall out of favor with additional consumers because other consumers have stopped purchasing the product. C) the dominant firm in an oligopolistic industry to react to competing firms' price increases by decreasing the price of its own product. D) price wars to break out in oligopolistic industries in which firms produce products possessing characteristics that make them prone to network effects.