State whether the following statements are true or false: a. When constant marginal cost > 0, marginal net benefit (P-MC) increases at the rate of interest. b. When the growth rate in demand exceeds the discount rate, the efficient outcome in a competitive industry will result in a larger amount of oil available for the future period than the current period.
State whether the following statements are true or false: a. When constant marginal cost > 0, marginal net benefit (P-MC) increases at the rate of interest. b. When the growth rate in demand exceeds the discount rate, the efficient outcome in a competitive industry will result in a larger amount of oil available for the future period than the current period.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 2.5CE
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State whether the following statements are true or false:
a. When constant marginal cost > 0, marginal net benefit (P-MC) increases at the rate of interest.
b. When the growth rate in demand exceeds the discount rate, the efficient outcome in a competitive industry will result in a larger amount of oil available for the future period than the current period.
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