When U.S. government regulations that prevent goods from being imported are relaxed, this
A. Causes U.S. cartels to become even stronger.
B. Reduces the barriers to entry into U.S. markets.
C. Creates an environment conducive to predatory pricing.
D. Causes oligopoly profits to increase.
Answer: B
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Which one of the following statements is false?
a. Bequest value is the value of environmental services to future generations b. Willingness-to-pay tends to be smaller than willingness-to-accept for the same service c. The production function approach to valuation considers the cost of constructing facilities to provide environmental services d. Contingent valuation can be used to estimate existence values e. The value of just knowing a wild species exists is called indirect use value
If a firm finds that its marginal cost is greater than its price, it
A. Should increase production. B. Is maximizing its profit. C. Is maximizing its total revenue. D. Should reduce production.
Which of the following goods are likely to be considered substitutes?
A. Gasoline and diesel fuel B. Peanut butter and jelly C. Hot dogs and hot dog buns D. Coke and Pepsi
Refer to the given data. If the prices of labor and capital are $9 and $15 respectively, at the profit-maximizing level of output, the firm's total revenue will be:
A. $114.
B. $180.
C. $129.
D. $192.