Because most people prefer smartphones to flip phones, firms can improve efficiency by
A. stopping production of flip phones and starting production of smartphones.
B. starting production of flip phones and stopping production of smartphones.
C. stopping production of both flip phones and smartphones.
D. increasing production of both flip phones and smartphones.
Answer: A
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A firm will increase its production when
a. its marginal revenue rises. b. its marginal cost rises. c. its fixed costs fall. d. the demand for its product falls.
The above figure shows the apartment rental market in Bigtown. If there is a shortage of 200,000 apartments in the Bigtown rental market, it might be because the Bigtown Housing Authority has imposed a rent
A) ceiling of $750.00 monthly. B) ceiling of $500.00 monthly. C) floor of $750.00 monthly. D) floor of $500.00 monthly.
Which of the following properly matches the owner of a resource with the corresponding payment?
a. Land owners and rent b. Entrepreneurs and interest payments c. Laborers and profit d. Entrepreneurs and rent e. Capitalists and salaries
Following a new deposit of $500 at a bank, drawn on funds previously held on deposit at another bank, when the reserve ratio is 10 percent, the maximum potential increase in the money supply will be
A. $5,000. B. $500. C. $0. D. $400.