Maximizing the benefits of a transaction made under a contract often requires specific investments that lose value if the parties fail to fulfill their commitments
Indicate whether the statement is true or false
T
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Which of the following is a reason that marginal product will eventually begin to fall?
a. effective use of fixed inputs b. decrease in demand c. increased specialization d. limited amounts of fixed inputs
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
With the opportunity to trade Silvia and Art can ________ the maximum consumption of computers by ________ units.
A. increase; 160 B. increase; 40 C. decrease; 80 D. decrease; 160
The less staggered are labor contracts,
A) the more rapidly the economy will adjust to changes in aggregate demand. B) the less rapidly the economy will adjust to changes in aggregate demand. C) the greater the inflationary effects of a given change in money growth in the medium run. D) the less inflationary effects of a given change in money growth in the medium run.
Why would Sunkist incur substantial costs to advertise and establish a brand name when the quality of its oranges can easily be evaluated by consumers?
What will be an ideal response?