Recall the Application about the shutdown price for coal to answer the following question(s).According to the Application, there are still some mines that are in operation in the United States. Because 4 West Mine has now shut down, what must be true about 4 West Mine and the other operational mines?
A. 4 West Mine's AVC is higher than the other remaining mines.
B. 4 West Mine's AVC is lower than the other remaining mines.
C. 4 West Mine's ATC is higher than the other remaining mines.
D. 4 West Mine's ATC is lower than the other remaining mines.
Answer: A
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Economic growth means people produce
A) money. B) material things. C) whatever people value. D) only durable and high-quality goods.
Which of the following institutions can not borrow from the Federal Reserve at the discount window?
A) Thrift institutions B) Member banks C) Nonmember banks D) Life insurance companies
Which of the following makes it difficult for markets to produce public goods?
a. Free riders use the goods without paying for them. b. The government intervenes as a free rider. c. Intellectual property is easily stolen by foreign firms. d. Social pressures require firms to lower prices on the goods.
To increase safety at a bad intersection, the mayor must decide whether to install a traffic light at a cost of $45,000 . If the traffic light reduces the risk of fatality by 0.4 percent, and the value of a human life is estimated to be $10 million, the mayor should
a. install the light because the expected benefit of $400,000 is greater than the cost. b. install the light because the expected benefit of $45,000 is greater than the cost. c. not install the light because the expected benefit of $45,000 is only equal to the cost. d. not install the light because the expected benefit of $40,000 is less than the cost.