Suppose a firm's current total cost of production is $50,000 per week, the wage rate is $1,000 per week and the cost of capital is $2,500. Which of the following gives the general equation for the firm's isocost lines for total cost C?
A. C = 20 - 0.5L
B. C = 2,500K - 0.5L
C. K = (C/2,500) - (C/1,000)
D. K = (C/2,500) - 0.4L
D. K = (C/2,500) - 0.4L
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Answer the following statement true (T) or false (F)
The last $2,000 of Rolanda's wealth adds less to her utility than the previous $2,000 . Based on this information, Rolanda has
a. increasing marginal utility of wealth and is risk averse. b. increasing marginal utility of wealth and is not risk averse. c. decreasing marginal utility of wealth and is risk averse. d. decreasing marginal utility of wealth and is not risk averse.
Examples of management reports for internal decision making include all of the following except:
a. 1120S Report b. Cash Budget c. Cash Forecast d. Accounts Receivable Aging Summary
When what people pay does not necessarily reflect the real value they put on a good, it is likely that the:
A. good is nonrivalrous. B. good is easily excludable. C. free rider problem exists. D. good will be oversupplied.