Pietro is a manager at a carwash. He has hired 10 workers to wash and detail cars for him and is considering what type of payment scheme he should set up for his workers
He can pay each of his workers $9 per hour to wash and detail cars, or he can pay his workers $12 for each car a worker washes and details. (It takes 75 minutes, on average, for an employee to wash and detail a car.) If Pietro wants to maximize the number of cars his workers wash and detail in one day, which payment scheme should he use? Explain.
If Pietro wants to maximize the number of cars his workers wash and detail in one day, he should pay them $12 for each car so that workers also will have an incentive to wash and detail as many cars as possible. However, if the workers are rushing through their work, it is likely that the cars will not be washed and detailed properly.
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Peanut butter and jelly are complements for consumers. In 2015, the price of peanut butter increased. As a result, the ________ which lead to ________ in the price of jelly and ________ in the quantity of jelly
A) demand for jelly; a decrease; a decrease B) supply of jelly; a decrease; an increase C) supply of jelly; an increase; a decrease D) demand for jelly; an increase; an increase
Refer to Figure 4.2. A shift from D1 to D2 will result from which of the following?
A) an increase in expected future profits B) an increase in corporate taxes C) an increase in tax credits for savings D) a decrease in the desire of households to consume today
A grower faces a price of $0.13/pound for his/her pumpkins. The buyers of the pumpkins will buy as many pumpkins as offered by the grower at this price. The pumpkin farmer evaluates his/her costs and finds that his/her production costs (average total costs) are $0.16 per pound. He/she also evaluates the marginal cost of production and finds that the marginal cost of production at the current level of production is $0.14 per pound. The average variable cost of production at the current level is $0.12 per pound. In the short run, the producer should try to:
a. Increase amount produced to get maximum profit b. Decrease the amount produced to get maximum profit c. Leave unchanged the amount produced to get maximum profit d. Stop producing and let the pumpkins rot
When the price level is low, resulting in domestic goods being cheaper than imported foreign goods:
A. consumers hold more money. B. consumers spend less money. C. the demand for domestic goods will increase. D. there will be a reduction in import tariffs.