Explain why companies that choose low-pollution technologies will find it hard to survive in a competitive industry.
What will be an ideal response?
In order to survive in a competitive industry, a firm must operate at minimum average cost in the long run. It is unlikely that the lowest cost technology is a low-polluting technology. Typically, it costs more to produce using a low-polluting technology. Hence, the firm that chooses the low-polluting technology will incur costs above minimum average cost, and so will not survive in a competitive industry in the long run.
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Long-distance travel by bus is an inferior good. As people's incomes increase and other things remain the same, you predict that the
A) price of long-distance travel by bus will fall and the demand for long-distance travel by bus will increase. B) price of long-distance travel by bus will fall. C) demand for long-distance travel by bus will decrease and the price will rise. D) demand for long-distance travel by bus will increase as the price of long-distance travel by bus falls.
The Bureau of Labor Statistics produces data on unemployment
a. weekly. b. monthly. c. quarterly. d. yearly.