The real cost of a decision is the opportunity cost measured in the commodities forgone
a. True
b. False
Indicate whether the statement is true or false
True
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With a natural monopoly,
A) no regulation is necessary because it is a natural monopoly. B) regulation takes the form of forcing competition from new firms. C) regulation takes the form of forcing the company out of business. D) regulation can take the form of average cost pricing to allow coverage of costs. E) regulation takes the form of breaking the company into several competing firms.
Which of the following statements about Coasian reasoning is true?
a. Coasian reasoning lacks symmetry, it does not provide a starting point for negotiations toward an efficient outcome. b. Coasian reasoning emphasizes on the benefits received by the person having more rights compared to the others in the group. c. Coasian reasoning explains how the costs and benefits of a transaction are distributed among the parties. d. Coasian reasoning provides a starting point for negotiations toward an efficient outcome, if the cost of negotiation is low.
If a perfectly competitive firm receives a price below its shutdown point, it should stay open
a. True b. False Indicate whether the statement is true or false
Hours of work multiplied by output per hour equals
A. domestic income. B. investment. C. labor growth rate. D. GDP.