For products like parking lots and hotels, costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints. Therefore,

a. If SRMR>SRMC at capacity, then the firms should price to fill capacity
b. If SRMR c. If LRMR>LRMC at capacity, then the firms should price to fill capacity
d. If LRMR>LRMC at capacity, then the firms should price to fill capacity


a

Economics

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Define the following terms and explain their importance to the study of economics. a. marginal cost b. marginal revenue c. short-run equilibrium d. supply curve of the firm e. economic profit

What will be an ideal response?

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In the Wintrobe model of dictatorship:

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Which of the following would contribute to a United States current account surplus?

A. The United States makes a unilateral tariff reduction on imported goods. B. General Motors pays a dividend to a Swiss stockholder. C. The United States cuts back on American military personnel stationed in Germany. D. Russian vodka becomes increasingly popular in the United States.

Economics