Long-term contracts become longer:
A. when spot markets work well.
B. when the exchange environment is more complex.
C. when marginal costs are declining.
D. when specialized investment becomes more important.
Answer: D
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A utility-maximizing consumer equalizes marginal utilities per dollar spent across all goods
a. True b. False Indicate whether the statement is true or false
The supply of loanable funds slopes upward to the ______________________.
Fill in the blank(s) with the appropriate word(s).
A firm will operate if ______ is greater than ______; a firm will shut down if ______ are greater than _________.
Fill in the blank(s) with the appropriate word(s).
Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q216g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />Because all residents of Miniville shop at the store located closest to their homes, the optimal location for the first store to open in Miniville is:
A. at the western end of Lake Shore Drive.
B. Point A.
C. Point C.
D. there is no single optimal location for the first store.