The main economic rationale for government provision of services is
a. positive externalities
b. fairness
c. helping the poor
d. government failure
e. all of the above
A
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Refer to the table below. If this market is a Cournot Oligopoly and Firm X is produces 50 units, what is Firm Y's profit-maximizing quantity if their average total and marginal cost are constant and equal to $40?
The table above shows the market demand for a product that both Firm X and Firm Y manufacture. Both firms produce an identical product and the firms' average total and marginal cost are equal and constant.
A) 150 B) 50 C) 200 D) 100
If there are zero implicit costs, accounting profits _________economic profits
a. Are greater than b. Are equal to c. Are less than d. Have no inherent relationship to
Briefly explain Schumpeter’s model of innovation. Why does an innovator’s economic profit eventually reduce to zero?
What will be an ideal response?
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.