Suppose Addison is a big fan of jazz music, and that he likes opera music very little. What would his family of indifference curves look like?
A. Negatively sloped, with higher levels of utility represented by indifference curves that are closer to the origin
B. Positively sloped, with higher levels of utility represented by indifference curves that are closer to the origin
C. Negatively sloped, with higher levels of utility represented by indifference curves that are farther from the origin
D. Positively sloped, with higher levels of utility represented by indifference curves that are farther from the origin
C. Negatively sloped, with higher levels of utility represented by indifference curves that are farther from the origin
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Increasing opportunity cost while moving along a production possibilities frontier is the result of
A) taxes. B) firms' needs to produce profits. C) the fact that it is more difficult to use resources efficiently the more society produces. D) the fact that resources are not equally productive in alternative uses.
A tradable emissions permit program is efficient because the cap protects the environment while: a. generating substantial revenues for the government
b. keeping compliance and administration costs relatively low. c. while requiring the same response by each polluter. d. none of above
A merger of several firms operating in different industries—for example, a trucking company, a fast-food chain, and a brokerage house—is called:
A. an integrated merger. B. a conglomerate merger. C. a vertical merger. D. a horizontal merger.
When a firm is at its short-run break-even point
A. economic profits are negative but the firm should continue to produce because accounting profits are positive. B. economic profits equal zero and the firm should shut down. C. economic profits are positive. D. economic profits equal zero and the firm is earning a nominal rate of return on investment.