As Rainclouds Inc moves downward along its production possibilities frontier, illustrated in the figure above, the opportunity cost of a raincoat ________
A) decreases
B) depends on the initial quantity produced
C) increases
D) remains the same
A
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Even ideal cartels tend to be unstable because
a. firms typically prefer competition to collusion as competition, because it leads to more profits. b. collusion leads to lowest possible overall profits in the industry. c. oligopolistic managers are extremely risk loving. d. firms can benefit by secretly selling more than they promised the other firms e. all of the above
If a poor country can "catch up" to a rich country, its productivity rises more rapidly than the productivity of the rich country
a. True b. False Indicate whether the statement is true or false
Which of the following will lead to an increase in the firm's short-run demand for labor?
A) a decrease in the price of the final product B) an increase in price of the final product's substitute good C) an improvement in labor productivity D) a decrease in the number of buyers for the final product
In a benefit-cost analysis, the determination of feasibility
a. can be made by finding out if PVB/PVC is greater than unity b. is not critical and therefore is an optional step c. can be accomplished by finding out if PVNB is greater than zero d. all of the above e. (a) and (c) only