Which of the following statements is true?
A. A production process is either economically efficient or technically efficient but never both.
B. A production process must always be both economically efficient and technically efficient.
C. Any economically efficient production process is always technically efficient.
D. Any technically efficient production process is always economically efficient.
Answer: C
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The firm's profit-maximizing price is
a. P1. b. P2. c. P3. d. P4.
Which of the following statements is true?
A. The lower transaction costs are, the more likely individuals will solve negative externality problems through a voluntary exchange. B. The higher transaction costs are, the more likely individuals will solve negative externality problems through a voluntary exchange. C. Coase agrees with Pigou that taxing those activities associated with negative externalities is a good idea. D. a and c E. none of the above
Which of the following is not a public good?
a. a coastal lighthouse b. national defense c. a flood-control levee d. the latest Walt Disney movie
A corporation is liable to pay to bondholders the
a. current interest rate in the bond market. b. current yield on the particular bond. c. coupon rate on the bond. d. yield on the bond at maturity.