An airline can profit by offering standby customers an unsold seat at a substantial discount just before takeoff because
a. additional passengers are needed to balance the load.
b. the marginal cost of additional passengers is very small.
c. additional passengers add little to fixed costs.
d. such passengers add more to profits than do those with reserved seats.
b
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According to the textbook, when claim they are using the cost-plus-markup formula, they
A) usually choose a 10 percent markup B) usually choose a 50 percent markup C) usually choose a 100 percent markup D) might not be correctly describing their price-setting behavior.
Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. Number of WorkersPizzas Baked Per Day00110218324430532How many workers will Joe hire if he must pay each one $35 a day?
A. 4 B. 2 C. 3 D. 1
In a laborabundant country, free trade will cause a(n) __________ in the rental of capital and a(n) _________ in the marginal product of capital.
a. increase; increase b. increase; decrease c. decrease; decrease d. decrease; increase
Asset price "bubbles" occur when buyers expect asset prices to increase in the future.
Answer the following statement true (T) or false (F)