Suppose analysts are arguing about Head Start. The male analyst argues that the money spent on Head Start per person is worth it because current spending on it is less than current spending on the expected reduction in jail costs. The female analyst argues that the money was spent long ago and saved today, and it would necessarily be worth it.
A. The male analyst (alone) is properly advocating employing present value analysis.
B. Both analysts are properly advocating employing present value analysis.
C. Neither analyst is properly advocating employing present value analysis.
D. The female analyst (alone) is properly advocating employing present value analysis.
Answer: D
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The average total cost curve of a firm is U shaped but the average variable cost is not.
Answer the following statement true (T) or false (F)
Hardcover books usually cost much more to purchase that do otherwise identical paperback editions of the same book because
A) hardcover books typically last longer.
B) the demand for hardcover books is typically less elastic than the demand for paperback books at the same price.
C) the marginal cost of producing hardcover books typically rises as output increases.
D) the marginal cost of producing paperback books typically falls as output increases.
E) the mergers in the book-publishing industry have encouraged price discrimination.
Discuss the thought process of the owners of a new business with regard to property taxes when deciding where to locate. Will they always locate where property taxes are lowest? Why or why not?
What will be an ideal response?
If marginal product is decreasing, then it must be the case that
A. average product is greater than marginal product. B. average product is less than marginal product. C. average product is decreasing. D. both a and c E. none of the above.