In general, technology that reduces pollution will shift both the MC and ATC curves upward.
Answer the following statement true (T) or false (F)
True
Pollution abatement will increase the costs to the firm, shifting the MC curve upward (supply curve leftward), resulting in lower output, higher prices, and lower profits. The ATC will shift up.
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A labor market monopsony
A) has a marginal cost of labor curve that lies above the labor supply curve. B) has a marginal cost of labor curve that lies below the labor supply curve. C) is a labor market in which the firm has an elastic demand for labor. D) is a labor market in which the firm has an inelastic demand for labor.
What is meant by the term opportunity cost?
What will be an ideal response?
Book publishers often use a cost-plus pricing strategy. One reason for this is
A) bookstores, not publishers, ultimately determine how many books will be produced. B) much of the cost of publishing textbooks is difficult to assign to any particular book. C) publishers do not want to incur the expense of determining the profit-maximizing strategy. They prefer cost-plus pricing because of its lower cost. D) most publishers do not hire economists who can determine the number of books they must sell to equate marginal cost and marginal revenue.
A country will realize no gains from trade if
A) pre-trade and free-trade relative prices are identical. B) all countries employ the same technology. C) it does not have an absolute advantage in at least one good. D) its wage exceeds the world average. E) pre-trade and free-trade relative prices are not identical.