If the price of sugar changed in the market from 20 cents to 23 cents per pound, and Sunharvest Grocery Market didn't change the price it charges for the sugar, this behavior is likely due to
A. irrational expectations.
B. large menu costs.
C. discretionary policy.
D. small menu costs.
Answer: D
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The hourly wage rate is the opportunity cost of one hour of leisure because
A) the person's substitution effect exceeds his or her income effect. B) that is what a person gives up to enjoy the hour of leisure time. C) the person must work for a living. D) the person prefers leisure to work regardless of the wage.
Describe the three main categories of firms
What will be an ideal response?
In closely held firms, the manager-stockholder conflict is
A) worse than in the larger firm because there is no incentive for the individual stockholder to monitor managers. B) the same as in publicly held firms. C) less severe than in the larger firm because there is an incentive for the major stockholder to monitor managers. D) less pronounced than in large public companies, because the manager is the owner.
To secure a charter, the deciding bodies required which of the following from the business enterprises?
(a) A statement of business purpose and location (b) A business plan (c) A description of capital and labor requirements and expectations (d) All of the above