The above table shows the daily production possibilities for a bakery. Currently the bakery bakes 60 pizzas and 180 loaves of bread, that is at alternative C.Using the above table but now the bakery bakes 30 pizzas and 240 loaves of bread (alternative B), moving from alternative B to alternative D, what is the opportunity cost of one pizza pie?
A. 2.5 loaves of bread
B. 0.5 loaf of bread
C. 2 loaves of bread
D. 150 loaves of bread
Answer: C
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Consider a firm operating in a competitive market. The firm is producing 40 units of output, has an average total cost of production equal to $5, and is earning $240 economic profit in the short run. What is the current market price?
a. $9 b. $10 c. $11 d. $12
Examples of off-balance-sheet activities include
A) trading activities. B) extending loans to depositors. C) borrowing from other banks. D) selling negotiable CDs.
If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $2 and they are paying the profit-maximizing wholesale price of $8, what is the retail price of the product?
A) $6 B) $8 C) $2 D) $10
Fresh Air is a large company that repairs residential air conditioners in many homes spread across a state. The company has 50 employees who each have their own repair van. Because the managers of Fresh Air cannot monitor every employee on every repair job, the company sends a satisfaction score card to each customer asking them how pleased they are with the service. If an employee receives a
high satisfaction score, the employee receives a bonus. The bonus policy incentives the employees to do all of the following to earn a high satisfaction score except which one? A) Offer the customers free services or free up-grades on the repairs. B) Stop and take a lunch break on the way to the repair job. C) Perform a good repair. D) Be courteous to the customer