If a firm needs one machine to produce a product, and must replace the machine when it wears out, then the firm should pick a durability level of the machine that
A) minimizes the expense today.
B) minimizes the present discounted cost of having the machine forever.
C) maximizes the future value of the machine.
D) minimizes the future value of the machine.
B
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A family on a trip budgets $800 for restaurant meals and fast food. The family can buy 16 restaurant meals if they don't buy any fast food. What is the price of a fast-food meal for the family?
a. $5 b. $16 c. $20 d. $50 e. it is impossible to tell from the information given
Which of the following statements is correct?
a. Environmental degradation is an example of a free rider problem.. b. The division between public goods and common resources is clear-cut. c. Some goods, such as lighthouses, may be either private or public goods. d. The free-rider problem prevents governments from supplying public goods.