A manager of a clothing firm is deciding whether to add another factory in addition to one already in production. The manager would compare
a. The total benefits gained from the two factories to the total costs of running the two factories.
b. The incremental benefit expected from the second factory to the total costs of running the two factories.
c. The incremental benefit expected from the second factory to the cost of the second factory
d. The total benefits gained from the two factories to the incremental costs of running the two factories.
c
You might also like to view...
Explain the two theories of desired income distribution: the egalitarian principle and the productivity standard
What will be an ideal response?
If a bank gets a $100,000 new deposit, chooses to lend out $85,000, and increases its excess reserves by $5,000 at the same time, then the reserve requirement is: a. 10%
b. 15%. c. 20%. d. unable to be determined from the information given.
Classical economists are more likely than Keynesian economists to focus more on _____
Fill in the blank(s) with the appropriate word(s).
Seasonally adjusted unemployment rates:
A. adjust for the predictable summer increase in the unemployment rate for teenagers. B. adjust for the predictable summer decrease in the unemployment rate for teenagers. C. are the same as the unadjusted rates in periods of bad weather. D. are not calculated for the U.S. economy.