Christine works for a firm that makes tires for cars. How is Christine's wage affected if the price of tires decreases?
The decrease in the price of tires decreases the demand for workers such as Christine. Her wage decreases as a result.
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If the selling price of a firm's product is $200 and the estimated average cost of producing this product is $150, what is the firm's markup?
A) 75 percent B) 33.33 percent C) 25 percent D) impossible to determine with the information given
When the firm produces zero output, its fixed cost is
a. zero b. the same as its total cost c. the same as its variable cost d. the same as its marginal cost e. infinite
For the monopolistic competitor, MR = P
a. True b. False Indicate whether the statement is true or false
Suppose policy makers are pursuing a policy to fix the exchange rate. In such a system with perfect capital mobility, an open market purchase of domestic bonds by the domestic central bank will eventually result in
A) a permanent increase in the monetary base. B) a permanent reduction in the monetary base. C) a change in the composition of the monetary base. D) a gradual reduction in the domestic interest rate.