Corn flakes are
A) a rival good because many firms produce them.
B) a rival good because if another person wants some corn flakes society has to use additional resources to produce corn flakes for that person.
C) a non-rival good because there are only a few firms in the industry.
D) a non-rival good because even if another person wants some corn flakes so many corn flakes are produced that no additional resources are used to satisfy this new customer's needs.
E) a public good.
B
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A firm has two projects. Project A has an internal rate of return of 6%. Project B's internal rate of return is 11%. If the firm's discount rate is 9.57%,
A) both projects have a negative net present value. B) only project A has a positive net present value. C) only project B has a positive net present value. D) both projects have a positive net present value.
When the Fed decreases the required reserve ratio, then the:
a. ability of banks to make loans is restricted. b. ability of banks to make loans is enhanced. c. ability of banks to make loans is unaffected. d. interest rate that banks pay to the Fed to borrow money is reduced. e. interest rate that banks pay other banks to borrow money is decreased.