For a perfectly competitive syrup producer whose average total cost curve does not change, an economic profit could turn into an economic loss if the
A) market demand for syrup decreases.
B) marginal cost curve shifts downward.
C) market demand for syrup does not change.
D) market demand for syrup increases.
E) price of syrup rises.
A
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Jerry is interested in purchasing a washing machine. The price of the machine is $500. The probability that the machine will break down is 20% every year
If the machine breaks down in the first year and Jerry holds a warranty, he receives a new washing machine worth $400 that year. If the machine breaks down after two years and he holds a warranty, he receives a new machine that is worth $300 after the second year. The price of a warranty for two years is $100. The market interest rate is 5%. Is buying the warranty a good investment for Jerry? Explain your answer. Show all the necessary calculations.
In the above figure, if a subsidy is granted to producers that generates an efficient allocation of resources, then consumers will pay a price of
A) $20 per unit. B) $15 per unit. C) $10 per unit. D) $5 per unit.
If the mangers of Special Cakes, a large bakery, acquire an egg farm to produce the eggs for their cakes, the managers of Special Cakes are likely to experience all of the following except which one?
A) an increase in their required areas of expertise B) an increase in managerial diseconomies C) a decrease in managerial diseconomies D) an increase in the complexity of coordination of Special Cakes
Members of the Board of Governors of the Fed:
A. must leave office when there is a new administration elected. B. are appointed for life, though they can resign at any time. C. serve one non-renewable fourteen-year term. D. can be reappointed after their term expires.