A company that can build a project that will cost $50,000, but returns $52,000 in one year would make a good decision by turning this project down if the interest rate were 3 percent
a. True
b. False
Indicate whether the statement is true or false
False
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According to the textbook authors, pollution is a growing "social" problem because
A) only society, rather than individuals, pollutes. B) pollution is inefficient. C) pollution is economically efficient. D) more people are beginning to question the moral and legal rights of polluters.
Andrew has the utility of wealth curve shown in the above figure. He owns an SUV worth $30,000 and that is his only wealth. There is a 10 percent chance that he will have an accident within a year. If he does have an accident, his SUV is worthless
Suppose all SUV owners are like Andrew. An insurance company agrees to pay each person who has an accident the full value of his/her SUV. The company's operating expenses are $1,500. What is the minimum insurance premium that the company is willing to accept? A) $1,500 per year B) $4,500 per year C) $3,000 per year D) $6,000 per year
For the monopolistically competitive firm, the demand curve it faces will be steeper the:
A. more easily the good can be substituted. B. more complement goods are available. C. less easily the good can be substituted. D. less complement goods are available.
Variable costs increase when output rises
a. True b. False Indicate whether the statement is true or false