Mining of "conflict diamonds" tends to:
A. be more profitable as warring factions are willing to pay more for the diamonds.
B. occur at a slower pace than would maximize the long-term stream of profits because war
increases extraction costs.
C. occur at a pace slower than would maximize the long-term stream of profits since the war
disrupts production.
D. occur at a pace faster than would maximize the long-term stream of profits since warring
factions extract diamonds as quickly as possible due to fears that they may soon lose
control of the diamond mines.
Answer: D
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Suppose your firm operates in a perfectly competitive market and decides to double its output. How does this affect the firm's marginal profit?
A) Marginal revenue and marginal cost increase B) Marginal revenue increases but marginal cost remains the same C) Marginal cost may change but marginal revenue remains the same D) Marginal revenue and marginal cost decrease
Assume that you know the following cost information about Fred's widget company: Its fixed cost is $9, and its total variable cost is $6 for 1 unit; $11 for 2; $ 15 for 3; 20 for 4; and 26 for 5 . Given the above information, a. the marginal cost of providing the second unit is $5. b. the total cost of producing 4 units is $29
c. the average total cost of producing five units is $7. d. all of the above are true.