Identify the reason why U.S. Steel prefers to own iron ore mines
a. It helps them to coordinate iron ore transport and furnace operations.
b. It reduces the company's raw material costs.
c. It helps them to inspect the quality of the ore.
d. It reduces the competition the company faces in the world steel market.
A
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In the graph for the consumption function, the 45-degree line
A) contains only a consumption component.
B) represents both planned consumption and planned investment.
C) shows various combinations where planned consumption equals real disposable income.
D) reflects a decreasing APC as real disposable income rises.
Suppose you buy a new car for ?$28,000. One year later it is worth ?$21,000?, and two years later it is worth ?$18,480. The depreciation on the car
A. cannot be determined B. is 25 percent in the first year C. is 34 percent for the two years overall D. rises for the second year.
An increase in the inflation rate of one country relative to another country will probably cause
A) an increase in exports for the inflating country. B) a balance of trade deficit for the inflating country. C) a current account surplus for the inflating country. D) an increase in the amount of official reserves held by the inflating country's central bank.
Suppose the price of an item in a perfectly competitive market is $2. For a firm in this market, MC = MR at an output of 100 units. The average total cost at this output level is $4 per unit, and TVC is $80. We may conclude that
A) the firm should shut down because TC > TR. B) the firm should continue to produce because P>AVC. C) the firm should shut down because its TFC is $320 and its TC is $400. D) the firm should shut down because other firms will enter the industry as the market is perfectly competitive.