Which of the following is a relevant cost?
A) replacement cost
B) sunk cost
C) historical cost
D) fixed cost
E) All of the above are relevant.
A
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When the Fed allows the monetary base to respond to the purchase or sale of domestic currency in the foreign exchange market, the process is called
A) open market operations. B) hedging. C) sterilized intervention. D) unsterilized intervention.
All of the following are true for first-degree price discrimination except which one?
A) Consumers pay less for the first units that they purchase. B) In reality, it is impossible to practice. C) Each consumer pays the maximum price they are willing to pay for every unit purchased. D) Consumers receive no consumer surplus.
The principle of specialization and exchange implies that
a. total production is highest when individuals specialize according to their absolute advantages b. productive inefficiency increases as producers in society specialize c. exchange can only occur when there is specialization in the economy d. gains from specialization will only occur when society is operating at a point along its production possibilities frontier e. total production is highest when individuals specialize according to their comparative advantages
Price-fixing:
A. is prohibited by Section 7 of the Clayton Act. B. is a per se violation of the antitrust laws. C. may be either legal or illegal depending on whether or not it produces above-normal profits. D. is illegal under terms of the Federal Trade Commission Act.