Which of the following is not an impure public good?
a. a full movie theatre
b. a fairly congested highway
c. a swimming pool at ninety percent capacity
d. the average major league baseball game in early April
a
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T-Shirt Enterprises is operating in a perfectly competitive market. It is producing 3,000 t-shirts and selling them for $10 each. At this level of output, the average total cost is $10.50 and the average variable cost is $10.20. Based on these data, the firm should
A. decrease production to 2,500 t-shirts. B. shut down in the short run. C. continue to produce 3,000 t-shirts. D. increase production to 3,500 t-shirts.
If you want to know the present value of $5,000 received in one year, and the interest rate is 2 percent, what formula can you use?
A) Present value equals 1.02 divided by $5,000. B) Present value equals $5,000 times 0.02. C) Present value equals $5,000 times 1.02. D) Present value equals $5,000 divided by 1.02
When there are external economies of scale, an increase in the size of the market will
A) increase the number of firms and lower the price per unit. B) increase the number of firms and raise the price per unit. C) decrease the number of firms and raise the price per unit. D) decrease the number of firms and lower the price per unit. E) not affect the number of firms, but will lower the price per unit.
One of the shortcomings of the activist approach is the difficulty in correctly identifying the economy's potential output level and the natural rate of unemployment
Indicate whether the statement is true or false