Ronny's Pizza House operates in the perfectly competitive local pizza market. If the price of pizza cheese increases (ceteris paribus), what is the expected impact on Ronny's profit-maximizing output decision?
A) Output increases to cover the higher input cost
B) Output increases because the marginal cost curve shifts upward
C) Output decreases because the marginal cost curve shifts upward
D) Output decreases because the price of pizza must also increase
C
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It would have been very difficult to clean up Lake Erie some years ago without government participation primarily because
A) environmental improvements benefit everyone and should therefore be financed from taxes. B) the lake is a navigable body of water. C) the lake is officially public property. D) the pursuit of profit will cause environmental deterioration. E) too many people could benefit without helping to pay the cost of the cleanup.
With the passage of time as the availability of an exhaustible resource declines, the cost of extraction of the resource increases
a. True b. False Indicate whether the statement is true or false