The Clean Air Act and its amendments increase the production costs of the firms in a covered industry through increased:
A. fixed costs while marginal cost is unchanged.
B. fixed costs and increased marginal costs.
C. average cost while marginal cost is unchanged.
D. marginal cost while fixed costs remain the same.
Answer: B
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Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars Sold Trucks SoldLarry105Joe99Ralph312Based on last month's data, Joe's opportunity cost of selling a truck is selling:
A. 4 cars. B. 1 car. C. 9 cars. D. 1/3 of a car.
Based on the figure above, which of the following factors could lead the supply curve to shift rightward from S0 to S2?
A) a fall in foreign interest rates B) a fall in the U.S. interest rate C) a rise in the U.S. exchange rate D) a fall in the U.S. exchange rate E) a rise in expected future U.S. exchange rate
Moving along a bowed-out PPF between milk and cotton, as more milk is produced the marginal cost of an additional gallon of milk
A) rises. B) does not change. C) falls. D) probably changes, but in an ambiguous direction.
A vertical demand curve has an elasticity of demand equal to zero.
Answer the following statement true (T) or false (F)