You are hired as an economic consultant to The Pampered Pet Shop. The Pampered Pet Shop operates in a perfectly competitive industry. This firm is currently producing at a point where market price equals its marginal cost. The market price is less than its average variable cost. You should advise the firm to
A. produce in the short run to minimize its loss, but exit the industry in the long run.
B. raise its price until it breaks even.
C. lower its price so that it can sell more units of output.
D. cease production immediately because it is not covering its variable costs of production.
Answer: D
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If the price level in the United States is 110, the price level is 120 in Mexico, and the nominal exchange rate is 140 pesos per dollar, what is the real exchange rate from the U.S. perspective?
A) 94 B) 115 C) 128 D) 153
You are at a college of roughly 1,000 students and obtain data from the entire freshman class (250 students) on height and weight during orientation
You consider this to be a population that you want to describe, rather than a sample from which you want to infer general relationships in a larger population. Weight (Y) is measured in pounds and height (X) is measured in inches. You calculate the following sums: = 94,228.8, = 1,248.9, = 7,625.9 (small letters refer to deviations from means as in = – ). (a) Given your general knowledge about human height and weight of a given age, what can you say about the shape of the two distributions? (b) What is the correlation coefficient between height and weight here? What will be an ideal response?
Discrimination raises the average wage of members of one group of workers in spite of laws that require equal pay for all workers
a. True b. False Indicate whether the statement is true or false
A market system:
a. produces answers to a society's "what" and "who" questions, but not the "for whom" question. b. produces answers to a society's "what" and "for whom" questions, but not the "how" question. c. produces answers to a society's "how" and "for whom" questions, but not the "what" question. d. produces answers to a society's "what," "how," and "for whom" questions.