Refer to the above figure. A perfectly competitive firm that is in long-run equilibrium will be operating
A) with positive economic profits.
B) at a quantity greater than point E.
C) at a quantity less than point E.
D) at point E.
D
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Some would cite the purchase of defective products and the rising cost of health care as market failures. Argue that these are not true market failures.
What will be an ideal response?
If the elasticity of supply for a good is greater than the government expected: a. Consumers will bear more of the burden of the tax than the government expected. b. Producers will bear more of the burden of the tax than the government expected. c. The tax will raise less revenue than the government expected
d. Both a. and c. are true.
Your company is considering a project that generates a revenue stream of $250 a year for four years. If the market interest rate is 8%, then the present value of this project is approximately
a. $-171.97 b. $828.03 c. $1,000.00 d. $1,080.00
Assume that coal is a normal good. If the price of coal increases and the quantity sold increases, which of the following is consistent with these observations?
A. The price of oil increased, oil and coal being substitutes B. A wage increase was give to coal miners C. New machinery made coal mining more efficient D. Consumers' incomes fell E. The demand curve is inelastic