QUESTTON 11 Support Economics is the study of allocation of scarce resources. Which of the following is NOT an example of economic scarcity? If Midstream Partners, LP spends more money on steel pipe because of tariffs, it will have less money available for a prospective acquisition of Smalltime, Inc If the CEO of Smalltime, Inc., Biff Powers, attends the Time 100 event in New York, he will not have time to meet in person with the general counsel of Midstream Partners, C. Tinsley Poone. O If Country Bookshelf bookstore increases the number of titles it carries, it will have to reallocate shelf space to accommodate the new titles. If United Supermarkets has more customers, it will have to spend more on grocery bags. Thelma Vandross is a loan officer at Hicksville State Bank, and is considering lending money to Superior Manure Services, but is unsure if they will be able to service the debt. Her alternative is to issue commercial paper in the overnight market. QUESTION 12 Two competing air carriers provide regular sir service between Wichita Falls and Amarillo. The services that are provided are identical in every respect. Variable costs are identical for the two carriers. Red River Air bought its airplane for $500,000, while West Texas Air rents its plane for $30,000 a year. If Red River Air were to go out of business, it would be able to rent its plane to another airline for $30,000. Which airline has lower economic costs? O Red River Air O West Texas Air O Neither, the costs are identical O Neither, West Texas Air has lower costs at low output levels and Red River Air has lower costs at high output levels. O More information is needed to answer this