Chapter 7
What will be an ideal response?
Bankruptcy filing that requires the liquidation of assets to distribute to creditors
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Figure 4.3 illustrates the demand for tacos. Assume that tacos and burritos are substitutes. A decrease in the price of burritos would bring about a movement from
A) point a to point c. B) point c to point b. C) D2 to D0. D) D1 to D2.
A firm maximizes profits when the ________ equals the ________
A) actual marginal product of capital; actual marginal product of labor B) actual marginal product of capital; expected marginal product of capital C) expected marginal product of capital; the opportunity cost of capital D) expected marginal product of capital; user cost of capital
Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below.
With no subsidy, what is producer surplus?
A. $0 per day B. $1,000 per day C. $8,000 per day D. $4,000 per day
Based on price setting behavior, we know that a reduction in the unemployment rate will cause
A) no change in the real wage. B) a reduction in the real wage. C) an increase in the real wage. D) an upward shift of the PS curve.