You are considering buying a store. In order to better access your return on the investment, your expectations of the return should be based on
a. Days where sales are high, costs are low
b. Days where sales are low and costs are high
c. Days where both sales and costs are low
d. A weighted average of all the above scenarios
d
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Consider a situation in which a factory emits high levels of air pollution and the factory is not liable for the damages its pollution causes. According to the Coase theorem, government action is ________ to achieve an ________ amount of pollution
A) necessary; equitable B) not necessary; equitable C) necessary; efficient D) not necessary; efficient.
Which of the following statements is true?
A) It is easier for a person to optimize when he has less information. B) Optimization implies choosing the best option from a set of alternatives. C) People always successfully optimize given the limited information they have. D) Optimization is an easy process, and all economic agents are perfect optimizers.
The cost disease of personal services stems primarily from the fact that
a. prices rise too slowly to provide public receipts. b. inflation has been with us since the early 1970s. c. personal service requires direct contact between producer and consumer. d. sellers of personal services have strong unions.
When considering perfect competition the absence of entry barriers implies that
A. firms can enter but cannot get out of the industry easily. B. all firms will earn economic profit. C. firms can enter and leave the industry without serious impediments. D. no firm can enter the industry.