Scarcity:
a. allows businesses to take advantage of economies of scale.
b. means that human wants for goods, services and resources exceed what is available.
c. means that as the level of production increases, the average cost of producing each individual unit declines.
d. only refers to resources, such as labor, tools, land, and raw materials.
b. means that human wants for goods, services and resources exceed what is available.
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Refer to above figure, which represents a duopoly industry. What would be the likely total industry payoff or profit?
A) $8 million B) $9 million C) $10 million D) $14 million E) zero
According to the efficient markets theory of stock prices, who are the primary beneficiaries of a sudden rise in demand for a firm's stock?
a. the consumers of the firm's products b. the current shareholders at the time of the rise in demand c. the investors who buy the firm's stock shortly after the rise in demand d. the investors who sell their shares just before the rise in demand e. the investors who have been carefully watching stock price patterns
According to the misperceptions theory of aggregate supply, if a firm thought that inflation was going to be 5 percent and actual inflation was 6 percent, then the firm would believe that the relative price of what it produce had
a. increased, so it would increase production. b. increased, so it would decrease production. c. decreased, so it would increase production. d. decreased, so it would decrease production.
If you watch a football game on a cable TV, the cable TV is:
A. an excludable good/service but nonrival in consumption. B. an excludable good/service and rival in consumption. C. a non-excludable good/service but rival in consumption. D. a non-excludable good/service and nonrival.