Total costs:
A. increases as the firm increases output.
B. are fixed costs plus variable costs.
C. include explicit and implicit costs.
D. All of these are true.
Answer: D
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The price paid to a resource in totally fixed supply is called
a. economic rent b. economic profit c. wages d. interest e. opportunity cost
The incentive for people to avoid paying for a resource when the benefits they obtain from the resource are unaffected by whether they pay is known as ___________________.
a. the Coase Theorem. b. an upstream tax. c. the holdout effect. d. free market environmentalism. e. None of the above.
There are only two firms in an industry with demand curves q1 = 30 - P and q2 = 30 - P. Both have no fixed costs and each has a marginal cost of 10 per unit produced. If they behave as profit-maximizing price takers, each produces 20 units and sells them at a price of 10 so that each firm makes zero economic profits. If they formed a cartel, the profit-maximizing price is
A) 10. B) 15. C) 20. D) 25.
Game theory is just as necessary for understanding competitive or monopoly markets as it is for understanding oligopolistic markets
a. True b. False Indicate whether the statement is true or false