Assume that the market for executive travel is perfectly competitive. If the availability of time-sharing reduces transaction costs and the owner's cost of negotiating for a single trip, which of the following situations must occur?
a. The hours of flight available will increase.
b. The hours of flight available will decrease.
c. The cost of flying will remain steady.
d. The cost of flying will increase.
A
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The opportunity cost of funds is the interest that can be earned by lending the funds
Indicate whether the statement is true or false
In order to be binding, a price floor
A) must lie below the free-market equilibrium price. B) must coincide with the free-market equilibrium price. C) must be high enough for firms to earn a profit. D) must lie above the free-market equilibrium price.
Which of the following statements can correctly be made about social regulation?
I. Extensive social regulation may have an anticompetitive effect. II. The benefits of social regulation are easier to measure than are the costs of social regulation. A) I only B) II only C) both I and II D) neither I nor II
Which among the following countries had the highest GDP per person in 2011?
A. Mexico B. India C. Russia D. China