Answer the following statements true (T) or false (F)
1. The free-rider problem makes a good highly profitable for a private firm to provide.
2. The free-rider problem refers to the local government's problem of finding funds to subsidize public transportation.
3. Rivalry means that when one person buys and consumes a product, it is not available for purchase and consumption by another person.
4. The government receives all of the benefits associated with the production of a public good.
1. FALSE
2. FALSE
3. TRUE
4. FALSE
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Assuming all else equal, what is likely to happen to the demand curve for reserves in an economy if it goes through a period of rapid expansion?
A) There will be a n upward movement along the demand curve for reserves. B) The demand curve for reserves will shift to the left. C) There will be a downward movement along the demand curve for reserves. D) The demand curve for reserves will shift to the right.
Firms in monopolistic competition determine the profit-maximizing level of output by producing
A) the same output level as rivals do. B) where average total cost is minimized. C) at the point of minimum average fixed cost. D) where marginal revenue equals marginal cost. E) where price equals average total cost.
Foreign firms are incorporated in four firm concentration ratios
a. True b. False Indicate whether the statement is true or false
What is the distinction between innovation and invention?