Suppose Sam's Shoe Co. makes one kind of shoe. An example of a fixed cost for this company would be:
A. the needles for the sewing machines that need to be replaced after sewing every 1,000 pairs.
B. the leather needed to make the shoes.
C. the lease for the factory building.
D. All of these are examples of fixed costs.
Answer: C
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A) market demand and a firm's supply B) market supply and a firm's demand C) a firm's demand and its supply D) market demand and market supply
Money is a concept that has a certain value at a point in time
a. True b. False Indicate whether the statement is true or false
According to the supply and demand framework in the text, an increase in import trade tends to ______ domestic production of a good.
Fill in the blank(s) with the appropriate word(s).
Which of the following causes the opportunity cost of holding money in the form of cash to decrease?
A. Higher short-term yields. B. Lower interest rates. C. Higher long-term yields. D. Higher reserve requirement.