Which of the following is NOT an example of raising rivals' fixed costs?
A. Federal Express lobbying the U.S. Department of Transportation to increase annual terminal fees.
B. Existing doctors in a particular medical field lobby to require new doctors to acquire new licenses.
C. Yellow Cab Company lobbying New York City government officials for an ordinance that would require all taxi cab drivers to pay for a medallion, giving them the right to drive a cab in New York City.
D. The New York Port Authority lobbying to increase the tolls on New York City's George Washington Bridge.
Answer: D
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Look at today's Wall Street Journal. What is the leading economic news story? With which of the big economic questions does it deal and what tradeoffs does it discuss or imply?
What will be an ideal response?
If a firm experiences constant returns to scale throughout:
a. the long-run average-total-cost curve is negatively sloped. b. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their positively sloped portion. c. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at their minimum points. d. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their negatively sloped portion. e. the long-run average-total-cost curve is positively sloped.
We Deliver for You is a local company that has several couriers who pick up small packages from local offices and hand deliver them to other local office buildings in same day. The managers of We Deliver for You want the couriers to make as many prompt and speedy deliveries a day as possible, and to incentivize the couriers, the managers do not pay the couriers a salary, rather a flat fee per
delivery. This payment policy will incentivize the couriers to do all of the following except which one? A) minimize their daily number of deliveries B) arrive to pick up packages promptly C) drive fast and take driving risks D) make prompt deliveries
If the Fed believes the natural rate of unemployment is 5.5 percent and the natural rate is really 5 percent, what is likely to happen in the short run?
a. The Fed will allow unemployment to be unnecessarily high and output to be unnecessarily low. b. The Fed will allow unemployment to be unnecessarily high, but output will remain at potential. c. The Fed will allow unemployment to be unnecessarily low and output to be unnecessarily high. d. The Fed will allow output to be unnecessarily low, but unemployment will remain at the natural rate. e. The Fed will allow unemployment to be unnecessarily low and output to be unnecessarily low.