Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below. Acme Manufacturing: TC = 100 + 3Q. Generic Industries: TC = 500 + 3Q. Which of the following statements is true?
A. Marginal cost at each firm depends on the level of output.
B. Acme and Generic have the same marginal cost.
C. Acme has greater economies of scale than does Generic.
D. Acme has a lower marginal cost than does Generic.
Answer: B
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If the purchase of used goods was to be incorporated into measuring GDP using the expenditure approach, then
A) consumption spending would need to be adjusted for depreciation. B) it will be very difficult to assign a fair market value to a used good. C) we will have to account for the natural depreciation that a used good experiences. D) we also will have to account for spending on financial assets. E) we will be counting the value of the used goods both at the time of their production and at the time of their re-sale.
Social disapproval carries a higher cost in all of the following cases except when you:
A. know the people around you. B. care about the opinions of people around you. C. expect to interact with the people around you again in the future. D. have very loose interactions with community members.
Contractions are characterized by
A. an upward movement toward a peak in economic activity. B. a long period in which no cycles are observed in economic activity. C. increases in the rate of growth of economic activity. D. a downward movement toward a trough in economic activity.
The airline industry is an example of a(n) ________ industry.
A. oligopolistic B. perfectly competitive C. monopolistic D. monopolistically competitive