Consider a coal mining company that can mine coal this year or next year. As expected future profits increase, the extraction quantity this year:
A. Increases due to a higher user cost
B. Increases due to a lower user cost
C. Decreases due to a higher user cost
D. Decreases due to a lower user cost
C. Decreases due to a higher user cost
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When all of the available factors of production are being efficiently employed, the
A) economy is producing at a point within its PPF. B) economy is producing at a point on its PPF. C) economy is producing at a point beyond its PPF. D) PPF disappears. E) opportunity cost of changing production is infinite.
When the manager of a local movie theater raises the price of movie tickets from $7.50 to $8.50, his total revenue falls. This means that:
a. the demand for movie tickets is highly elastic. b. the supply of movie tickets is perfectly elastic. c. the supply of movie tickets is unit-elastic. d. the demand for movie tickets is inelastic. e. the supply of movie tickets is inelastic.