If the marginal cost for Dinky's Donuts to advertise one additional day each week in the local newspaper is $200, then Dinky's Donuts should advertize that additional day
A) until the marginal benefit the company receives reaches zero.
B) as long as the marginal benefit the company receives each week is just equal to or greater than $200.
C) as long as the weekly marginal cost does not rise.
D) only if the marginal benefit the company receives each week is greater than $200 plus an acceptable profit margin.
B
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Increasing savings and ________ go hand in hand because they both ________
A) decreasing expenditures; are the result of an increase in nominal interest rates on the loanable funds market B) decreasing expenditures; are the result of an increase in real interest rates on the loanable funds market C) increasing expenditures; are the result of an increase in nominal interest rates on the loanable funds market D) increasing expenditures; are the result of an increase in real interest rates on the loanable funds market E) None of the above answers is correct.
Refer to Figure 4-4. At the equilibrium price of $15 consumers are willing to buy 80 pounds of tiger shrimp. Is this an economically efficient quantity?
A) No, the marginal benefit of the 80th unit exceeds the marginal cost of the 80th unit.
B) No, the marginal cost of the 80th unit exceeds the marginal benefit of the 80th unit.
C) Yes, because marginal cost is zero at the 80th unit.
D) Yes, because $15 is the price where the marginal benefit is equal to the marginal cost.
Sales taxes are
A. assessed on the prices paid on a large set of goods and services. B. based on each individual taxpayer's income level. C. levied on purchases of a particular good or service. D. collected only by the U.S. government.
Engineers for the Off Road Skateboard Company determine that a 12% increase in all inputs will cause a smaller percentage increase in output. Assuming that input prices remain constant, you correctly deduce that such a change in inputs will cause ________ as output increases.
A. average costs to decrease B. average fixed costs to increase C. total costs to decrease D. average costs to increase