If ZipCo's marginal revenue product curves slope downward, what can we conclude about the structure of the market in which ZipCo sells its product?
a. The firm is a price searcher because price is greater than marginal revenue.
b. The firm is a price taker because price is equal to marginal revenue.
c. The firm is a price searcher because the price of each resource is constant.
d. The firm is a price taker because the price of each resource is constant.
e. Nothing.
E
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Refer to Scenario 2 . What would be the impact of improvements in technology assuming that each country spends one-half of its resources on capital goods?
What will be an ideal response?
Lazy Lucy's parents decided that they would only pay her tuition if she passes all her classes. They would stop paying her tuition if she procrastinates and fails her courses. Lucy's parent's decision is a solution to a ________problem
a. Adverse selection b. Moral hazard c. Forced bankruptcy d. None of the above
Suppose Smith's oil refinery and Jones's paper mill both pollute a river and both firms operate under a system of marketable pollution permits. If it costs Smith $45 to reduce pollution by 500 gallons per day, and Jones can reduce costs by $65 by increasing pollution by 500 units per day:
A. the firms cannot gain by trading the right to pollute. B. both firms can benefit if Smith trades the right to increase pollution by 500 gallons to Jones for $30. C. both firms can benefit if Smith trades the right to increase pollution by 500 gallons to Jones for $50. D. both firms can benefit if Jones trades the right to increase pollution by 500 gallons to Smith for $30.
What is the largest category in federal government spending?
A. Social Security B. national defense C. income security D. health