To produce 10 shirts, the total cost is $80; to produce 11 shirts, the total cost is $99. The marginal cost of the 11th shirt is equal to
A) $8.
B) $9.
C) $80.
D) $99.
E) $19.
E
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Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one advantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would have the ability to share risk with shareholders. B) As a sole proprietor, Torrie would face limited liability. C) As a sole proprietor, Torrie would have both ownership and control over the business. D) All of the above would be advantages of setting up her business as a sole proprietorship.
Teenagers generally have high marginal revenue products because they have not completed their educations and have little job experience
a. True b. False Indicate whether the statement is true or false
When is it best to sell bonds?
A) When interest rates are expected to rise, because this means bond prices will rise. B) When interest rates are expected to fall, because this means bond prices will rise. C) When interest rates are expected to rise, because this means bond prices will fall. D) When interest rates are expected to fall, because this means bond prices will fall.
Consider a market characterized by a Herfindahl-Hirschman index of 5,000. One of the firms in this market has a Lerner index of 0.89 and is considering a horizontal merger with a competing firm. Based on this information, it is likely that the U.S. Department of Justice will:
A. reject the merger since the industry is highly concentrated, even though the firm proposing the merger has little market power. B. reject the merger since the industry is highly concentrated and the firm proposing the merger has significant market power. C. approve the merger since the industry is not concentrated and the firm proposing to merge has little market power. D. None of the answers are correct.