Refer to Table 5.1. What is Andrea's opportunity cost of producing one tiara?
A) 1/6 of a bracelet
B) 2/3 of a bracelet
C) 3 bracelets
D) 6 bracelets
D
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In which of the following situations is there most likely to be a monopsony?
A) the market for farm workers in a large rural area B) the market for advertising executives in New York City C) the market for accountants in New York City D) the market for NBA players drafted out of college by one NBA team
When economists say that mortgages are "securitized" what do they mean by this description?
What will be an ideal response?
A perfectly competitive firm faces a market clearing price of $150 per unit. Average total costs are at the minimum value of $120 per unit at an output rate of 70 units. Marginal cost equals $150 per unit at an output rate of 75 units
It can be concluded that the short-run profit-maximizing output rate is A) 75 units, at which the firm earns zero economic profits per unit sold. B) 75 units, at which the firm earns negative economic profits per unit sold. C) 75 units, at which the firm earns positive economic profits per unit sold. D) 70 units, because price is less than average total costs.
[Appendix: Advanced Material] Cross functional revenue management examines capacity, pricing, and customer account management in order to maximize revenue. If the MegaPlex Movie Theater finds that too often they have to turn customers away from their theaters at peak movie times for blockbusters creating too much slippage, cross functional revenue management suggests:
a. They could consider increasing the capacity of each theater to be able to seat more customers. b. They could lower the price at the peak times to reduce the problem of spoilage. c. They could stop showing blockbuster movies and select more critically acclaimed art films to decrease spoilage. d. They could stop showing movies at night.