Social demand exceeds market demand whenever:
A.) Private costs exist.
B.) External costs exist.
C.) Private benefits exist.
D.) External benefits exist.
D.) External benefits exist.
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Suppose that new computer software for accounting and analysis at a business has a useful life of only one year and costs $200,000 before it needs to be upgraded to a new version. The revenue generated by this software is expected to be $250,000. The expected rate of return from this new computer software is
A. 11%. B. 25%. C. 20%. D. 80%.
According to an article the Wall Street Journal, "The big car makers are pushing a wide
array of new technology into production, responding to relentless competitive pressure, rising energy prices and consumer demand for better safety. Source: Joseph B. White, "Ford, GM Eye Shift in Buying Habits," Wall Street Journal, May 22, 2006. Which of Porter's competitive forces does this statement allude to? A) competition from foreign auto manufacturers B) competition from substitute products from outside the industry C) competition from existing firms within the industry D) the threat of competition from new entrants
The U.S. Customs Service reclassified imports of compact trucks (like the Toyota Tacoma) from "cab and chassis with some final assembly needed" to "complete or unfinished trucks." As a result of this reclassification, a tariff of _____ was applied, and U.S. prices of Japanese compact trucks rose by _____.
a. 25%; 25% b. 25%; more than 25% c. 25%; less than 25% d. 4%; more than 4%
The type of nonprice rationing that most closely approaches the market outcome is
A. coupon rationing with coupons that cannot be resold. B. favored customer rationing. C. coupon rationing with coupons that can be resold. D. first-come, first-served basis or queuing.