A college education can be a signal because
A) a college education is expensive.
B) those who graduate college have successful parents, and are therefore also likely to be successful.
C) highly capable people are more likely to finish college than those with low capabilities.
D) college teaches useful skills and gives valuable training.
C
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The production period in which at least one input is fixed in quantity is the
A) production run. B) long run. C) short run. D) planning horizon.
Depreciation refers to a decrease in the value of a durable good caused by: a. an increase in the price level. b. changes in the interest rate
c. wear and tear over time. d. changes in tax laws. e. a decrease in its resale value.
A monopolist's supply curve
a. is the upward-sloping portion of its marginal cost curve b. is the portion of its marginal cost curve above AVC c. is parallel to its long run ATC curve d. does not exist because quantity supplied depends on the market demand curve e. is derived from the average variable cost curve
If a 10 percent change in the price of a good caused a 10 percent change in the quantity demanded of the good, we would say that over this range of prices the good has a(n)
A) elastic demand. B) inelastic demand. C) perfectly elastic demand. D) unit elasticity of demand.