A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . All else equal, if the firm continues its production in the same economic environment, the firm's economic profits should
a. increase if output is low enough
b. decrease
c. stay the same
d. increase if output is high enough
d
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If a community spends more than the amount a categorical grant requires, the effect is _____
a. the same as a general grant b. better than a general grant c. worse than a general grant d. impossible to determine given the available information
A study by labor economists Hamermesh and Biddle found that
a. shorter-than-average men earn more than shorter-than-average women, all else equal. b. above-average looking people earn more than average-looking people, all else equal. c. shorter women earn more than taller women, all else equal. d. All of the above are correct.
Refer to the accompanying figure. If this restaurant goes from producing 20 to 25 pizzas per hour, then which of the following statements is true?
A. It has to give up exactly 25 salads. B. It has to give up exactly 12.5 salads. C. It has to give up more than 12.5 salads. D. It has to give up fewer than 12.5 salads.
The accompanying table shows a pizzeria's fixed cost and variable cost at different levels of output. Pizzas sell for $20 each.Number of Pizzas Per DayFixed Cost ($/Day)Variable Cost ($/Day)050002550015050500250755004501005008501255001,650 When the pizzeria makes 100 pizzas per day, it earns an economic ________ of ________.
A. loss; $500 B. loss; $650 C. profit; $650 D. profit; $1,150