Refer to Figure 8.2. Which graph illustrates an output expansion path with an increasing capital-labor ratio?
A. A
B. B
C. C
D. D
D. D
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A rent ceiling controls the rent portion of the cost of housing but not the search cost. So when the search cost is ________ the rent, some people end up paying a ________ opportunity cost for housing than they would if there were no rent ceiling
A) added to; lower B) subtracted from; higher C) subtracted from; lower D) added to; higher E) equal to; lower
The jet noise assaulting the ears of a baggage handler is not an externality or spillover cost if
A) baggage handlers are required by law to wear hearing protectors. B) baggage handlers are required by their employers to wear hearing protectors. C) baggage handlers freely choose to wear hearing protectors. D) baggage handlers find the pay sufficiently attractive to stay with their jobs. E) the noise does no permanent damage to their hearing.
Lionel's Lawn Care is a company that maintains residential yards. Lionel's cost for his standard package of mowing, edging, and trimming is $15, and he charges $25 for this service. For a total price of $40, Lionel will also trim shrubs, a service that
adds an additional $10 to the total cost of the standard package. Should Lionel continue to offer the shrub-trimming service? A) yes, his marginal benefit is greater than his marginal cost B) yes, but only if he raises the price of the standard package C) no, his marginal benefit is less than his marginal cost D) More information is needed for Lionel to make this decision.
The ABC Computer Company spends a lot of money for advertising designed to convince you that their personal computers are superior to all other personal computers. If the ABC Company is successful, the demand for ABC personal computers
A. and the demand for other firms? personal computers will become less price elastic. B. will become less price elastic, but the demand for other firms? personal computers will become more price elastic. C. will become more price elastic, but the demand for other firms? personal computers will become less price elastic. D. and the demand for other firms? personal computers will become more price elastic.