A price increase causes a consumer's "real" income to:
A. increase.
B. remain unchanged.
C. decrease.
D. decrease or increase depending on the size of the price change.
Answer: C
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Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The table below describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-HoursPer DayOutputPer Day0014048091201516023200When the firm uses 9 employee-hours, its total cost each day is:
A. $126 B. $56 C. $176 D. $64
Answer the following statements true (T) or false (F)
1) Managers can reduce production or delivery costs by keeping an inventory of the goods they produce or sell. 2) Managers incur opportunity costs from holding goods in inventory. 3) The cost minimizing inventory sets the marginal benefit of increasing the order size equal to its marginal cost. 4) In most cases, the cost-minimizing order quantity depends on the variable cost per unit of ordering. 5) The optimal order quantity and the optimal inventory level increase as the cost of carrying a unit in inventory increases.
What is a price floor and what are its economic effects?
Please provide the best answer for the statement.
To improve delivery, Joe's Pizza Emporium made a change that involved taking better account of traffic to avoid delays in delivering pizzas. This is an example of
A) positive technological change. B) increasing marginal returns. C) a reduction in fixed costs. D) diseconomies of scale.