A "stair-like" market supply curve is the result of
A) higher cost firms charging a higher price for their products.
B) firms having different costs.
C) firms shutting down in the long run.
D) average variable costs that are higher than average fixed costs.
B
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An increase in the interest rates in a country:
A) reduces net exports. B) does not affect net exports. C) increases net exports. D) results in a an outflow of capital from the country.
In the above table, the total fixed cost is
A) $0. B) $20. C) $30. D) $50.
The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management decides to offer controlled rent but force the tenants to rent furniture from them. This is an example of
a. Tying b. Bundling c. Exclusion d. Fraud
The assumption of rationality in economics implies that:
a. people perfectly understand their own preferences. b. people can overcome economic obstacles in the best possible way. c. people can make accurate calculations and they have a perfect foresight. d. people make choices with an eye toward attaining objectives they have chosen.