Suppose that firm A obtained a patent for a new medication that cures certain types of cancer. Which assumption of the supply-and-demand model does not hold in this example?
A) Everyone is a price taker.
B) Products are homogeneous.
C) Trading costs are low.
D) Everyone has full information about the price and quality of goods.
A
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Lagging variables are aggregate economic variables that
A) reach a peak after leading variables but before coincident variables reach a peak. B) reach a peak after coincident variables reach a peak. C) reach a peak two or more years after aggregate economic activity reaches a peak. D) are insensitive to business cycles.
In economic decision making, what is a net benefit?
a. the fair-market value of both the money costs and the non-money costs b. the financial value gained from comparative advantages and absolute advantages c. the projected difference between marginal thinking and opportunity costs d. the difference between expected marginal benefits and expected marginal costs