Government decisions tend to be biased against actions that have
a. current costs and future benefits that are both easily observable.
b. future costs that are difficult to identify and current benefits that are easily observable.
c. future costs and future benefits that are both difficult to identify.
d. current costs that are easily observable and future benefits that are difficult to identify.
D
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In both a monopolistically competitive market and a pure monopoly market, firms
A) can make long-run profits. B) set price greater than marginal cost. C) are protected by entry barriers. D) advertise extensively.
Sport Tee Corporation manufactures T-shirts bearing the logos of professional football teams. The wholesale market for sport T-shirts is perfectly competitive. The manager forecasts the wholesale price of T-shirts next year to be $7.00. The firm's estimated marginal cost isSMC = 12 ? 0.005Q + 0.0000008Q2where Q is the number of T-shirts produced and sold each month. Sport Tee Corporation will have a fixed cost of $2,000 per month. Monthly profit will be
A. $2,250 B. $4,250 C. -$1,150 D. -$2,000 E. $3,400