Developing countries are damaged by dead capital because
A) it replaces too many workers, creating unemployment.
B) resulting inefficiencies greatly reduce the rate of return on investment.
C) it must be sold as scrap.
D) none of the above.
B
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The law of diminishing marginal utility states that total utility will decrease at an increasing rate as additional units of a commodity are consumed.
Answer the following statement true (T) or false (F)
Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Scott's opportunity cost of producing 1 taco is
A) 1/2 of a pizza. B) 1 pizza. C) 2 pizzas. D) 20 pizzas. E) 2 tacos.
In the above table, what is the minimum price that producers must be offered to produce the 200th brownie?
A) 0 B) 20¢ C) 60¢ D) 80¢
The market for a perfectly competitive industry has an equilibrium price of $5 and the minimum average cost for the firms in this market is $3. In the long run, we would expect
A. each firm to produce less output than their current output. B. the number of firms to fall. C. each firm’s profits to remain at $2 per unit. D. each firm’s average cost to rise.