The costs to firms of changing prices are called menu costs
Indicate whether the statement is true or false
TRUE
You might also like to view...
All central banks are controlled by government
Indicate whether the statement is true or false
Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed in the table. CustomerReservation Price($/Rental)A22B16C12D8E6F4Suppose Island Bikes knows that customers whose reservation prices are at least $10 always rent bikes before noon, while those whose reservation prices are below $10 never do so. If Island bikes can charge a different price in the morning and in the afternoon, then in the afternoon, it will rent out ________ bike(s) and charge ________ per bike.
A. 3; $4 B. 5; $10 C. 1; $8 D. 2; $6
What is implied when the wage-schooling profile is drawn as a concave (i.e., increasing at a decreasing rate) function?
A. Average wages fall as years of schooling increases. B. The cost of schooling decreases but at an increasing rate. C. The cost of schooling increases but at a decreasing rate. D. The marginal return to schooling increases as years of schooling increases. E. The marginal return to schooling is positive but falling as years of schooling increases.
Examples of transfer payments are
A. federal government spending for national defense. B. wages, profits, and rents. C. salaries of educators, police, and firefighters. D. Social Security checks and unemployment insurance payments.