For a large firm that produces and sells automobiles, which of the following costs would be a variable cost?
a. the $20 million payment that the firm pays each year for accounting services
b. the cost of the steel that is used in producing automobiles
c. the rent that the firm pays for office space in a suburb of St. Louis
d. All of the above are correct.
b
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In the above figure, if the price of milk rises, the budget line
A) rotates outward and the slope becomes steeper. B) shifts inward and its slope does not change. C) rotates inward and the slope becomes steeper. D) rotates inward and the slope becomes more shallow.
The table above gives the demand schedule for water bottled by Wanda's Healthy Waters. If the marginal cost is a constant $4 a bottle, Wanda's will produce ________ a day and charge ________ a bottle
A) 8 bottles; $8 B) 4 bottles; $12 C) 1 bottle; $15 D) 6 bottles; $10
An adverse supply shock causes inflation to
a. rise and the short-run Phillips curve to shift right. b. rise and the short-run Phillips curve to shift left. c. fall and the short-run Phillips curve to shift right. d. fall and the short-run Phillips curve to shift left.
Suppose a firm purchases new equipment to replace worn-out equipment at its factory. This purchase of new equipment is considered
A. inventory investment. B. durable consumption goods. C. gross private domestic investment. D. none of these.