Competitive firms consider private costs, but disregard external costs, when making their economic decisions
a. True
b. False
Indicate whether the statement is true or false
True
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The price effect is the effect of a ________ on the quantity of the good ________
A) decrease in the price; demanded B) change in the price; supplied C) change in price and income; consumed D) change in the price; consumed
Tiger Woods, a professional golfer, pays a garage mechanic to change the motor oil of his car even though he can do the work himself. Which of the following best explains why Tiger Woods does not change the oil himself?
A) Tiger Woods has an absolute advantage in changing oil. B) Tiger Woods has a comparative advantage in changing oil. C) There is no opportunity cost for the garage mechanic to change oil. D) The opportunity cost of changing oil is higher for Tiger Woods than for the garage mechanic.