Suppose Sarah owns a small company that makes wedding cakes. The accompanying table shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day.Number of Cakes Per DayTotal Cost Per Day0$1001$1802$2203$3004$4005$5206$660 If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $95 each, then Sarah should produce ________ cakes per day.
A. 5
B. 3
C. 6
D. 0
Answer: B
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Generally speaking, income inequality is
A) higher in Europe than in the United States. B) higher in the United States than in most of the developing world. C) extremely high and does not vary much between nations in the developing world. D) higher in the developing world than in the developed world.
Checks written by the firm and not yet cleared represe
a. payment float b. availability float c. net float d. cash in hand e. none of these
A liquidity trap exists when a change in the money supply immediately and drastically affects interest rates.
a. true b. false
A basic tenet of the theory of the firm is that the firm's primary objective is to
A. produce a given level of output at a specified cost. B. operate for the benefit of society. C. stay out of debt. D. maximize economic profits.