Refer to Table 8.1. Assume the wage rate is $10 and the firm has $1,000 in unavoidable fixed cost. What is the average fixed cost of producing 93 units of output?
A. $11.40
B. $10.75
C. $0.65
D. $10.00
B. $10.75
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Refer to Figure 9.2. A movement from point d to point c could be caused by a(n)
A) increase in government spending. B) increase in the price of oil. C) increase in taxes. D) increase in short-run aggregate supply.
When your textbook says that it is misleading to say that the market economy produces an aggregate GDP-measured "economic pie," the authors have the following claim in mind:
A) Unlike a pie, income in the economy can't be divvied out independent of the exchange process. B) The economy produces more than just pies. C) The "pie" metaphor focuses solely on real GDP and excludes the more important measure of nominal GDP. D) The production of pies create no income opportunities for market participants.
For a given pair of production outputs, the degree of economies of scope:
A) is constant across different output levels. B) only increases as the level of output increases. C) may increase or decrease with output. D) will always tend to zero as output becomes very large.
Bureaucratic control emphasizes which organizational element?
a. hierarchy and authority b. budget and market influences c. benchmarking statistics d. product quality assurance