In which field would economic rents likely be greatest for the best in their field?
A) farming
B) teaching
C) hockey
D) car repairing
C
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It has been generally observed that most trade in the world occurs between a developed and a less-developed nation rather than between industrial or developed nations
a. True b. False Indicate whether the statement is true or false
Ten friends who love to ski decide to pool their financial resources and equally share the cost of a one-week time-share condominium in Alta, Utah. Suppose that the lift lines at the ski resort become more congested when the ten additional people start to ski. Which of the following statements is not correct?
a. Use of the ski resort by the ten new skiers will yield a negative externality. b. The ski resort can reduce the congestion externality by raising lift ticket prices. c. An increase in lift ticket prices could be viewed as a corrective tax on the externality of congestion. d. Each of the ten friends would have been better off staying at home.
Explain why perfectly competitive firms make zero economic profit in the long run.
What will be an ideal response?
Use the above figure. When the price increases from $2 to $10, the absolute price elasticity of demand is
A. 1.50. B. 0.67. C. 1.00. D. 0.25.