All else equal, an increase in supply will cause an increase in consumer surplus
a. True
b. False
Indicate whether the statement is true or false
True
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The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The total cost of producing 30 baseball hats per hour is
A) $50. B) $200. C) $250. D) More information is needed to answer the question.
The marginal propensity to consume measures the average amount of wealth that a consumer spends in a given period of time
Indicate whether the statement is true or false
A good generalization about developing countries is
a. savings rates are low b. investment rates are low c. exports are mostly food and raw materials d. population growth rates are high e. none of the above
We may be tempted to determine the optimal level of advertising expenditures at the point where the last dollar spent on advertising generates an additional dollar of sales revenue (i.e, the marginal revenue of advertising equals one)
In general, this rule will not allow the firm to maximize profits because it ignores the: A) price elasticity of demand. B) marginal cost of additional sales generated by the advertising. C) advertising-to-sales ratio. D) fixed costs of advertising.