For a perfectly competitive firm, any price below its minimum AVC is a
A) market price.
B) shutdown price.
C) profit maximizing price.
D) negative price.
B
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According to this Application, many economists believe that the increase in "globalization" in the last 30 years has ________ the ability of countries to levy taxes at rates that differ substantially from other countries
A) limited B) slightly increased C) greatly increased D) eliminated
A single-price monopolist maximizes profits by producing the output at which
A) price equals marginal cost. B) price equals marginal revenue. C) marginal revenue equals marginal cost. D) marginal cost equals average cost.
One claim that trade barrier proponents use to enforce environmental standards is that
A) environmental standards do not reduce industrial competitiveness and do not induce race-to-the-bottom, where countries are forced to rescind their standards in order to maintain employment. B) high standards in industrialized nations motivates some firms to "export pollution" to developing countries by relocating their dirty industries. C) enforcing environmental standards is essential, as there are no differences between labor standards and environmental standards. D) all environmental impacts are non-transboundary. E) None of the above.
Suppose that you have just read a review of the literature of the effect of beauty on earnings
You were initially surprised to find a mild effect of beauty even on teaching evaluations at colleges. Intrigued by this effect, you consider explanations as to why more attractive individuals receive higher salaries. One of the possibilities you consider is that beauty may be a marker of performance/productivity. As a result, you set out to test whether or not more attractive individuals receive higher grades (cumulative GPA) at college. You happen to have access to individuals at two highly selective liberal arts colleges nearby. One of these specializes in Economics and Government and incoming students have an average SAT of 2,100; the other is known for its engineering program and has an incoming SAT average of 2,200. Conducting a survey, where you offer students a small incentive to answer a few questions regarding their academic performance, and taking a picture of these individuals, you establish that there is no relationship between grades and beauty. Write a short essay using some of the concepts of internal and external validity to determine if these results are likely to apply to universities in general. What will be an ideal response?