Answer the following statement(s) true (T) or false (F)
1. If a firms fixed costs increase from $2,000 to $3,000, then its marginal cost is $1,000.
2. If a firm can sell one more unit of its product for $7 and the marginal cost of producing that one more unit is only $5, then it should definitely produce and sell one more unit.
1. False
2. False
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According to this Application, why is the value of Wal-Mart's 2014 sales NOT an accurate measurement of its actual sales impact on the U.S. economy?
A) The sales figure includes the value of purchases from other firms. B) The sales figure did not account for chain-weighted inflation measurements. C) The sales figure was in nominal, not real, dollars. D) The sales figure did not take into account the recession of 2008.
If Johanna purchases a bond for $4,500 that promises to pay her $5,000 one year later, what is the interest rate on the bond?
a. 5.3 percent b. 5.6 percent c. 10.0 percent d. 11.1 percent e. 10.5 percent
Which of the following is adverse selection?
a. the risk associated with selecting stocks in only a few specific companies b. the risk that a person will become overconfident in his ability to select stocks c. a high-risk person being more likely to apply for insurance d. after obtaining insurance a person having less incentive to be careful
Which of the following top is NOT studied using microeconomics?
A. Ford's decision to introduce a new car model. B. An individual's decision to get married. C. A person's decision whether or not to commit a crime. D. An individual's moral values.