A business incurs the following costs per unit: Labor $5/unit; Materials $3/unit and rent $5000/month. If the firm produces 1000 units a month, the total costs equals
a. $5,000
b. $8,000
c. $13,000
d. $3,000
c
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If the money supply is $350 and PQ is $1,400, according to the quantity theory of money, the velocity of money is
a. 35.0. b. 7.5. c. 4.0. d. 0.25.
Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900.For both Joe and Sam, ________ is a ________.
A. leaving the price at $3; dominant strategy B. leaving the price at $3; Nash equilibrium C. cutting the price to $2.90; dominant strategy D. cutting the price to $2.90; dominated strategy
The property that rules out indifference curves that cross is:
A. independence. B. completeness. C. diminishing marginal rate of substitution. D. transitivity.
Suppose consumers and business decision makers become more optimistic about the future, and aggregate expenditures increase. The most likely result is that:
A. real GDP and employment and income to decline. B. real GDP and employment rise. C. real GDP rises and employment falls. D. real GDP falls and employment rises.