Which of the following statements is incorrect?
A. Fixed costs could be positive when sunk costs are zero.
B. Sunk costs are those costs that are forever lost after they have been paid.
C. Fixed costs do not vary with output.
D. Fixed costs are always greater than sunk costs.
Answer: D
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The public enterprise usually pursues a well defined purpose with exact controls over its behavior
Indicate whether the statement is true or false
The payoff matrix shows all of the following EXCEPT
A) if both oligopolists choose a high price, each makes $6 million. B) if they both choose a low price, each makes $4 million. C) if one chooses a low price and the other doesn't, the low priced firm will make $8 million. D) if one oligopolist chooses a high price and the other doesn't, the high-priced firm makes $8 million.
Marginal utility is _____
a. always greater than total utility b. utility that is not as good as normal utility c. the extra utility derived from consuming one additional unit of a good or service d. always positive e. not related to total utility
Figure 36-7
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In Figure 36-7, there are three aggregate expenditure functions (C + I + G + X? IM) for an open economy. Which of the following would cause a movement from A to B?
A. a European economic expansion B. A decrease in the money supply C. An increase in the interest rate D. An increase in the U.S. price level