To determine the change in the capital stock, the level of new investment must be adjusted for depreciation because some new investment
A) is not used immediately. B) replaces existing workers.
C) is more efficient than existing capital. D) merely replaces existing, but worn out, capital.
D
Economics
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Credible promises and hostage mechanisms can support a continuous stream of cooperative exchanges except when
a. the promisor is better off fulfilling than ignoring his promise b. neither party has a prior dominant strategy c. the hostage can be revoked for just causes d. the hostage is more valuable than any given exchange e. the hostage is difficult to replace
Economics
For a perfectly competitive firm facing the short-run break-even price
A) it has a negative accounting profit. B) it has an economic profit of zero. C) it should shut down. D) it should expand production.
Economics