Sandra's Sweaters' production function is shown in the above table. Sandra rents three knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. If Sandra produces 18 sweaters per day, what is her average total cost?
A) $5.00
B) $6.67
C) $9.44
D) $10.00
C
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Some online penny auctions charge a fee, such as $1, for every bid placed
Why should these costs of $1 per bid be considered sunk costs? Would it be smart for someone who has "already invested $5 in bidding costs" to keep bidding to "protect his or her sunk investments"? Why or why not?
Richard's indifference curve for two goods (bread and butter) is L-shaped, whereas Kate's indifference curve for the same two goods is convex. We can infer that _____
a. Kate considers bread and butter to be perfect substitutes b. Kate considers bread and butter to be perfect complements c. Richard considers bread and butter to be perfect substitutes d. Richard considers bread and butter to be perfect complements
Owners of municipal bonds
a. are not required to pay federal income tax on the interest income. b. usually receive a higher interest rate compared to bonds issued by corporations. c. usually receive a higher interest rate compared to stock issued by corporations. d. pay taxes on the dividends earned from these bonds.
If the legal minimum wage rate were set at $15/hour,
A. employment would decline substantially. B. employment would decline slightly. C. employment would not be affected. D. employment would rise slightly.