Which of the following would be an example of a fixed cost?
A) the electric and gas bills
B) wages paid to temporary workers
C) property insurance premiums
D) expenditures on imported raw materials
Answer: C
You might also like to view...
Season tickets entail a certain amount of risk due to unpredictable team quality, injuries, weather, and so forth. Who is most likely to purchase season tickets?
A) Sally, who is a rabid fan and is not wealthy B) Jim, who is a rabid fan and is risk neutral C) Roger, who is a rabid fan but is risk averse D) Jenn, who is a fan and is very wealthy
A monopolistically competitive firm is currently charging a price of $20 and producing 3,000 units/month. It faces monthly fixed costs of $1,000 and has an average variable cost of $22/unit. We would expect:
a. The firm to earn an economic profit in the long run b. The firm to shut down in the short run c. The firm to raise its price to cover its variable costs d. The firm to adjust its production to minimum efficient scale
The demand curve can be derived from indifference curves by varying the price of the commodity in question.
Answer the following statement true (T) or false (F)
When its marginal cost increases, a firm aiming at maximizing net revenue
A) can always raise its price, but only by the amount of the cost increase. B) can often raise its price by more than the cost increase. C) can raise its price, but always by less than the cost increase. D) may not be able to raise its price at all.