The basic goals of total utility maximization, total profit maximization, and total welfare maximization explain most market activity.
Answer the following statement true (T) or false (F)
True
The goal of consumers is to maximize total utility, the business firm's goal is to maximize total profit, and the government's goal is total welfare maximization.
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Under which conditions might diseconomies of scale result?
A. hampered coordination brought about by bureaucracy B. decreasing costs of inputs C. increasing output prices D. usage of a large amount of indivisible inputs by the firm
The sacrifice ratio is
A. the number of percentage points that the unemployment rate rises when output declines by one percentage point. B. the percentage change in employment when output declines by one percentage point. C. the percentage reduction in inflation when output falls one percentage point below potential. D. the amount of output lost when the inflation rate is reduced by one percentage point.
A system of tradable air pollution permits has the advantage of
A. eliminating all environmental liability for participating polluters. B. ensuring that the goal amount of abatement occurs at the lowest social cost. C. rewarding efficient abatement effort at the expense of inefficient abatement efforts. D. reducing the total amount of air pollution.
Which of the following is true for the game in Scenario 13.3?
A) Moto's dominant strategy is the CD changer. B) Moto's dominant strategy is the free maintenance. C) Zport's dominant strategy is the low-profile tires. D) Zport's dominant strategy is the sun roof. E) Neither company has a dominant strategy.