Select the phrase that correctly completes the following statement. "An increase in input prices caused a decrease in the supply of baseballs. As a result ________."
A) the price of baseballs increased and the quantity demanded of baseballs decreased
B) the equilibrium quantity of baseballs increased
C) the price of baseballs increased. The higher price caused the supply of baseballs to increase
D) the price of baseballs increased and the demand for baseballs decreased
A
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A decrease in the price of a currency in terms of another under a flexible exchange rate regime is called:
a. capital flight. b. depreciation. c. revaluation. d. devaluation. e. currency adjustment.
One reason why it is difficult to regulate a natural monopoly is
a. the lack of relevant economic theory b. determining what price the firm is actually charging its customers c. determining the appropriate side payment d. an information problem — the monopoly's managers have an incentive to overstate costs e. an information problem — the monopoly's managers have an incentive to overstate revenues
Answer the following statement(s) true (T) or false (F)
1. From an economic perspective, the zero discharge goal meets the efficiency criterion by accounting for both the benefits and costs of that objective. 2. According to available data, most water bodies in the United States have met the zero discharge goal. 3. The effluent limitations are set to maximize net benefits. 4. Because the effluent limitations are set uniformly, achieving a cost-effective solution is unlikely. 5. In order for the effluent limitations to achieve cost-effectiveness, the MACs of all polluters would have to be equal.
A monopolistically competitive firm is producing at an output level in the short run where average total cost is $4.50, price is $4.00, marginal revenue is $2.50, and marginal cost is $2.50. This firm is operating:
A. at the break-even level of output in the short run. B. at an efficient level of output in the short run. C. with a loss in the short run. D. with a profit in the short run.