Bloomberg Business sums up the failure of Enron to
A. risky projects in India and the oil price hikes.
B. September 11, 2001.
C. too much debt.
D. flawed organizational design.
Answer: D
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Which of the following would lead to a depreciating dollar?
A. A higher federal deficit B. Lower interest rates C. Higher interest rates D. Contractionary monetary policy
Economies of scale occur when the percentage increase in output
A) exceeds the percentage increase in all inputs. B) is less than the percentage increase in all inputs. C) exceeds the percentage decrease in all inputs. D) is less than the percentage decrease in all inputs.
Suppose the fixed cost of building a nuclear power plant is $1 billion. Suppose also that the only variable cost is the labor of Homer Simpson, and he earns $10 per hour. If the plant generates 1,000 kilowatts each hour, and has already generated 1 billion kilowatts, what can you say about the marginal cost of the next kilowatt?
a. b and e. b. The marginal cost is equal to $.01. c. The marginal cost is equal to $1.01. d. The marginal cost is rising. e. The marginal cost is falling.
In the short run, an unexpected increase in prices will
a. reduce resource prices and increase the quantity of goods supplied. b. decrease the productive capacity of firms and decrease the quantity of goods supplied. c. increase the profits of firms, thereby leading them to expand output. d. increase the profits of firms, thereby leading them to reduce output.