Answer the question on the basis of the following information: Harry owns a barber shop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. By hiring a second barber at the same wage
rate, the shop can now provide a total of 42 haircuts per day. Refer to the given information. Harry should:
A. hire the second barber because he will add $28 to profits.
B. hire the second barber because he will add $108 to profits.
C. not hire the second barber because he is less productive than the first barber.
D. not hire the second barber because he will diminish profits.
Answer: A
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Amy can produce either 5000 pounds of cheese or 20 cars per year. Mike can produce either 5000 pounds of cheese or 10 cars per year. Mike's opportunity cost of producing one pound of cheese is ________ car(s).
A. 1/500 B. 500 C. 1/250 D. 1/10
Which policy measure makes it unlawful for a registered public accounting firm to provide any nonaudit service to a client contemporaneously with an impermissible audit?
A) Sarbanes-Oxley Act of 2002 B) Global Legal Settlement of 2002 C) Gramm-Leach-Bliley Act of 1999 D) Riegle-Neal Act of 1994
All two-dimensional graphs must have an origin, a horizontal axis, and a vertical axis.
Answer the following statement true (T) or false (F)
If the marginal cost curve is below the average variable cost curve, then
A. average variable costs are decreasing. B. average variable costs are increasing. C. marginal cost must be decreasing. D. average variable costs could either be increasing or decreasing.