In 1984, British Prime Minister Margaret Thatcher decided to shut down so-called "uneconomic" coal mines owned by the government. The National Union of Mineworkers protested, asserting that there was enough coal in the mines to continue current levels of production for years. Thatcher implicitly argued that her decision was economically sound because, at any practical level of output, for each
"uneconomic" mine,
a. MC > AC.
b. for every input, MPP > APP.
c. MC > MR.
d. AC > MC.
c
You might also like to view...
Sam, 2 drills process the furniture maker uses to produce tables are
A. Physical capital B. Human capital. C. Natural resources. D. Technological resources E. None.
If the Fed wants to maintain current interest rates, it would be buying government bonds in the open market when
A) the demand for money increases. B) investment demand decreases. C) the discount rate increases. D) the demand for money decreases.
The market for Product A has many sellers, selling identical products, each earning an economic profit of zero in the long run. The market for Product B has many sellers, selling differentiated products, each earning an economics profit of zero in the long run. Given this information, one can conclude that
A. The markets for Product A and Product B are perfectly competitive. B. The markets for Product A and Product B are monopolistically competitive. C. The market for Product A is monopolistically competitive and the market for Product B is perfectly competitive. D. The market for Product A is perfectly competitive and the market for Product B is monopolistically competitive.
Market failure occurs when
A. resources are misallocated, or allocated inefficiently. B. perfectly competitive firms produce where MR = MC. C. firms are only able to earn a normal profit. D. firms that are incurring losses leave a market.