Why would a chain store sell some items, such as soda pop, below cost?
A) They are not interested always in maximizing profit.
B) They feel people need soda pop more than the other items in the store.
C) Pricing some items "below cost" might be an efficient strategy to maximize the store's total profit.
D) Because most firms can only enjoy profits by consistently selling all their items below cost.
C
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When a government must operate on a balanced budget, it means that there is no ________ or ________
A) unemployment; special taxes B) surplus; deficit C) bonds being issued; purchased D) borrowing; printing of money
In 2015, the U.S. auto industry experienced rising sales. The automobile industry was experiencing the effects of
A) the underground economy. B) inflation. C) the business cycle. D) depreciation.
Refer to the above figure. For which Lorenz curve does the richest 25 percent make 50 percent of the nation's money income?
A) A B) B C) C D) D
How does value of marginal product (VMP) of labor determine the number of workers a competitive firm will hire?