In the above figure
A. the optimal degree of air cleanliness is less than 100 percent.
B. the marginal cost curve slopes up because of the law of diminishing returns.
C. Neither A nor B are correct.
D. Both A and B are correct.
Answer: D
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Government is viewed in the economic way of thinking as many different people interacting on the basis of
A) fear of punishment rather than hope for reward. B) legal considerations rather than profitability. C) prevailing property rights. D) principles of cooperation rather than of competition. E) regard for the public interest rather than private interest.
The demand curve for the product of a perfectly competitive firm is
A) downward sloping. B) upward sloping. C) perfectly inelastic. D) perfectly elastic.
A manufacturer of towels finds that his returns to scale are constant. Which of the following conclusions can be drawn?
a. The long-run total cost curve is horizontal. b. The long-run average cost curve is horizontal. c. The long-run total cost curve is downward sloping. d. The long-run average cost curve is downward sloping.
If the price of oranges, a substitute for apples, decreases and the wages of apple workers increases, how will the equilibrium point change?