If a firm has excess capacity, then
A) the firm expends too much of its resources on advertising its product without seeing an appreciable increase in sales.
B) the firm is not producing its minimum efficient scale of output.
C) the firm's long-run average cost of producing a given quantity exceeds its short-run cost of producing that same quantity.
D) the firm's quantity supplied exceeds its quantity demanded.
Answer: B
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The following are the equations for the supply and demand curves in the market for weezils: Demand: Qd= 20?2P Supply: Qs= 5 + 3P where Qdis the quantity demanded, Qsis the quantity supplied, and P is the price per weezil in dollars. Refer to Exhibit 4-1. If the government imposes a price floor of $4 a weezil, how many weezils will be sold?
A. 5 B. 10 C. 12 D. 14
Currently Belize, a country in Central America, has a small coffee industry but does not export any coffee
Suppose the government of Belize, in order to protect the new coffee industry to enable it to grow into a mature industry that can compete in world markets, places a tariff on the importation of coffee. What is the argument that has been used to support the tariff on coffee? A) the infant-industry argument B) the dumping argument C) protection of Belize coffee workers D) to prevent rich countries from exploiting developing countries
The output of Mexican citizens who work in Texas would be included in the
A) net national product of the United States. B) gross national product of the United States. C) gross national product of Mexico. D) gross domestic product of Mexico.
Which of the following statements is true?
a. Economic profits ignore implicit costs and revenues. b. Although implicit costs do not show up in accounting profits, they nevertheless affect managerial decisions. c. Although explicit costs do not show up in accounting profits, they nevertheless affect managerial decisions. d. Economists consider sunk costs in their decision making