If you were going to expand a facility by adding 10% more seats, and the costs of providing ushers and other personnel to deal with the new seats was exactly the same (on a per seat basis) as the older portion of the facility, the new MC curve would look like the previous one, except that it would
A. just shift to the right.
B. just shift up.
C. no longer be a backward L but would be upward sloping once the old capacity was reached.
D. just shift to the left.
Answer: A
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Extensive government restrictions on the use of capital are likely to
A) result in capital resources being devoted to their most efficient uses. B) enhance economic growth. C) enhance economic freedom. D) create dead capital.
Vouchers create the efficient outcome only if production is such that the marginal social cost
A) exceeds the marginal private benefit. B) equals the marginal external benefit. C) equals the marginal social benefit. D) is decreased so it equals the marginal private cost.
Refer to Table 22-6. Consider the statistics in the table above in describing the developing countries. Are these consistent with the economic growth model? Briefly explain
What will be an ideal response?
If the price of a substitute increases, which of the following is most likely to happen in the market for the product under consideration in the short run?
A) Supply will increase. B) Firms will leave the market. C) Firms will devote more variable inputs in the production of this good. D) Firms will devote less variable inputs in the production of this good.