Assuming that pizza is a normal good, if students' income at your college increases substantially, there would be:
A) a reduction in the demand for pizza.
B) an increase in the quantity of pizza demanded.
C) no change in the demand for pizza.
D) an increase in the demand for pizza.
Ans: D) an increase in the demand for pizza.
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The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour, what is the average variable cost of selling 83 books per hour (assuming labor costs are the only variable costs of production)?
A) $0.43 per book B) $0.07 per book C) $2.30 per book D) $6.00 per book
During this century, court decisions on antitrust have:
a. changed from per se, to rule of reason, and back to per se. b. changed from rule of reason, to per se, and back to rule of reason. c. always emphasized per se. d. always emphasized rule of reason. e. varied from judge to judge without following any pattern.
In the long run, when price is less than average total cost for all possible levels of production, a firm in a competitive market will choose to exit (or not enter) the market
a. True b. False Indicate whether the statement is true or false
Which of the following examples shows marginal revenue product?
a. The newest staff member, Genevieve, started with a salary of $1,000 per week. b. Stan had sales of $1,000 per week and was paid $700, leaving profit of $300. c. When JP joined the team, the mechanics were able to service six more cars per day. d. A recent hire, Ganesh, added $1,600 per week to the accounting firm’s hourly billing.