Refer to the diagram, representing Slippery Slope Oil Company. A $5 decrease in the user cost would:
A. decrease the optimal quantity extracted in the present.
B. increase the optimal quantity extracted in the present.
C. not affect the optimal quantity extracted in the present.
D. reduce extraction costs in the present.
B. increase the optimal quantity extracted in the present.
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Figure 8.3 shows demands and costs for a monopolistically competitive firm. When the firm's demand curve shifts from D1 to D2 and to D3:
A. the demand for the firm's product is decreasing. B. the firm's average cost of production is increasing. C. the firm's marginal revenue curve also shifts to the left. D. All of these
A fixed exchange rate system crisis may be accompanied or followed by
A) unexpected gains of international reserves. B) revaluation of a currency. C) devaluation of a currency. D) deflationary pressures within the country.
The marginal tax rate can be calculated by which of the following formulas?
A. total taxes due divided by total taxable income B. total taxable income divided by total taxes due C. the change in taxable income divided by the change in taxes due D. the change in taxes due divided by the change in taxable income
The main examples of macroeconomic coordination failures are
A. profit declines. B. relative price changes. C. recessions and depressions. D. consumer taste changes.