A company will strive to minimize
A) transaction costs.
B) costs of internal operations.
C) total costs of transactions and internal operations combined.
D) variable costs.
C
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Refer to the Article Summary. Use a graph to illustrate average total cost curves for Macy's before and after closing the 35 to 40 stores. Assume that after closing the stores, Macy's will be producing at minimum average total cost
What will be an ideal response?
When the Fed raises the legal reserve requirement, it
a. lowers the cost of borrowing from the Fed, allowing banks to make more loans b. raises the cost of borrowing from the Fed, disallowing banks from making the same quantity of loans c. increases the amount of excess reserves that banks hold, allowing them to make more loans d. increases the amount of excess reserves that banks hold, disallowing them from making the same quantity of loans e. decreases the amount of excess reserves that banks hold, disallowing them from making the same quantity of loans
At existing wage rates, hospitals face a shortage of registered nurses (RNs). Some studies have suggested that an increase in RN wages will actually reduce the hours supplied by existing RNs, making it more difficult for hospitals to find RNs. Which of the following is likely the cause of these findings?
A. Constant marginal productivity B. The cost disease C. A substitution effect larger than the income effect D. An income effect larger than the substitution effect
The observation that beyond some point, successive increases in a variable factor of production added to a fixed factor of production lead to smaller and smaller increases in output is
A) the law of marginal utility. B) the law of averages. C) the law of diminishing marginal product. D) the law of opportunity costs.