Paul and Diane are two fishing fanatics who also supply local restaurants with fresh brook salmon. Paul uses a $20 rod and reel and catches 20 fish in one day. Diane places a $100 net all the way across the stream and at the end of the day she has caught 5,000 fish. Diane's ingenuity is an example of
a. constant returns to scale in fish production
b. increasing marginal cost
c. the difference between short- and long-run costs
d. the existence of economies of scale in fishing technology
e. unfair trade practices
D
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If a production process generates pollution, then a competitive market will
A) produce more of the good than is socially optimal. B) produce less of the good than is socially optimal. C) produce the socially optimal quantity of that good. D) produce zero output.
Refer to the table below. What is the profit-maximizing number of resort units for Gorgeous Sands Resort during the peak period?
The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units.
A) 350
B) 300
C) 250
D) 200
Profits earned by foreign firms or governments under a quota are called:
A. quota rents. B. quota revenue. C. trade costs. D. trade rents.
If you deposit $20,000 in cash into a demand deposit account at a bank that faces an 18 percent required reserve ratio the result will be:
a. the bank will add $3,600 to its excess reserves. b. the bank will add $16,400 to its excess reserves. c. the bank will add $16,400 to its total reserves. d. the bank will add $20,000 to its excess reserves.