An increase in the demand for a good will tend to bid up the cost of acquiring the good more
A) if suppliers respond by quickly making larger quantities available.
B) if the cost of transferring resources out of other uses into production are low.
C) in the short run than in the long run.
D) if the supply curve is highly elastic.
C
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If the interest rate is 5 percent (0.05) per year, what is the present value of $3,000 to be received two years from now?
a. $2,850.00 b. $3,000.00 c. $2,707.50 d. $2,721.09 e. $2,857.14
When regulating a natural monopoly, government officials
a. can set an efficient price, but the firm will suffer a loss b. can arrange a Pareto improvement by leaving the firm alone c. should force the firm to set a price equal to minimum marginal cost d. should force the firm to set a price equal to minimum long-run average total cost e. will increase efficiency if they force the firm to produce where MR = MC.