When competition is present and private ownership rights are clearly defined and securely enforced by the legal system, business firms will have a strong incentive to
A) innovate and develop better products and lower cost production methods.
B) engage in wasteful activities that increase the cost of producing goods and services.
C) use resources during the current period rather than conserving them for the future.
D) spend time attempting to plunder (take) the resources of others.
A) innovate and develop better products and lower cost production methods.
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
When the price of Starbucks coffee increased by 8 percent, the quantity demanded of Peet's coffee increased by 10 percent. Calculate the cross-price elasticity of demand between Starbucks coffee and Peet's coffee
What is the relationship between the two products?
The actual time length of the short run is determined by when diminishing marginal returns start
Indicate whether the statement is true or false
A vacation home in Malibu is
a. not rival in consumption and excludable. b. rival in consumption and excludable. c. not rival in consumption and not excludable. d. rival in consumption and not excludable.