All else equal, the sooner a depreciation allowance is taken, ________.
A) the less likely the net present value of the investment will be affected
B) the more likely the net present value of the investment will be negative
C) the more likely the net present value of the investment will be positive
D) the less likely the net present value of the investment will be positive
C) the more likely the net present value of the investment will be positive
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The price elasticity of demand for potatoes is estimated to be -1.3, and the quantity demanded of potatoes is 3,000 bushels per week. In this situation, a 4% rise in the price of potatoes would reduce the quantity demanded by
a. 92 bushels per week. b. 120 bushels per week. c. 156 bushels per week. d. 975 bushels per week.
Aggregation allows economists to ________ at the cost of ________.
A. make normative statements; ignoring positive analysis B. make positive statements; ignoring normative analysis C. see the big picture; obscuring the details D. see the details; obscuring the big picture
A gas station in the mountains of Oregon has a monopoly over the retail gas market within a 50-mile radius. The station decides not to price discriminate. As a result, all consumers will pay
A) the highest price each consumer is willing to pay. B) the lowest price possible. C) a single price. D) multiple prices. E) a price that depends on their willingness to pay.
The sum of AVC and AFC equals: a. total variable cost. b. economic profit
c. accounting profit. d. average total cost.