Between 1994 and 2004, the monthly charge for cellular phone service decreased from $120 per month to $30 per month. At the same time, the number of subscribers increased from less than 10 million to more than 75 million. Which of the following provides the best explanation for these changes?
a. an increase in consumer income between 1994 and 2004
b. a reduction in the price of residential phone service, a substitute for cellular phone service
c. an increase in the wages of workers in the cellular phone industry
d. technological improvements that reduced the cost of supplying cellular phone service
D
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The average total cost curves for Plant 1, ATC0, and Plant 2, ATC1, are shown in the figure above. Over what range of output is it efficient to operate Plant 1?
A) 0-20 B) 0-25 C) 20-25 D) greater than 25
If the required reserve ratio is .5, the deposit contraction multiplier is
A) .5. B) 2. C) 2.5. D) 5.
Refer to the table below. If Fresh Laundry is currently producing 4 quality units, to maximize profit, Fresh Laundry should ________ the number of quality units as the current quality marginal revenue is ________ than its marginal cost.
Fresh Laundry is a firm that produces laundry detergent. The table above summarizes Fresh Laundry's product quality marginal revenue and marginal cost at various quality levels.
A) decrease; greater
B) increase; greater
C) decrease; less
D) increase; less
What is one reason suppliers might offer a discount for quantity purchases?
A) reduced storage costs B) lower marginal cost C) lower marginal benefit D) price gouging