If the demand for labor decreases and the supply of labor is unchanged, then the opportunity cost of leisure will decrease
a. True
b. False
Indicate whether the statement is true or false
True
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By paying a higher-than-market wage, a firm can avoid the problem of
a. reputation as hostage b. moral hazard c. the winner's curse d. adverse selection e. symmetrical information
In the short run/long run, a strong currency goes with:
a. a low interest rate/a high interest rate. b. a high interest rate/a high interest rate. c. a high interest rate/a low interest rate. d. a low interest rate/a low interest rate.
As firms increase in size, they tend to experience a:
A. loss of opportunity cost. B. decrease in the need for managers. C. decrease in transaction costs. D. None of the answers are correct.
A government agency is having problems with personal telephone calls made during working hours. Because each minute of a personal call costs the agency $0.50 in wasted wages, it has decided to hire operators to monitor calls. The agency wants to hire the number of operators that will minimize the total cost of personal calls.
Based on the above information, if operators receive $400 a week, what is the lowest possible total cost of personal calls?
A. $1450 B. $1500 C. $650 D. $800