Bill owns "Bill's Home of Blues" a store that specializes in selling CDs and DVDs of blues musicians of the 1960s and 1970s. Bill took out a loan from his bank to pay for his store and its initial inventory

Bill pays the bank $900 per week for his loan. The $900 bank payment
A) is a short-run implicit cost. B) is a fixed cost.
C) is a variable cost. D) is a long-run implicit cost.


B

Economics

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An increase in checking account balances equals the initial deposit multiplied by total reserves

Indicate whether the statement is true or false

Economics

Refer to Figure 4.2. The substitution effect on the quantity of clothing purchased is:

A) the change from C3 to C1. B) the change from C3 to C2. C) the change from C2 to C1. D) the change from C1 to C2. E) none of the above

Economics

Even though insignificant explanatory variables can raise the adjusted R2 of a demand function, one should not interpret their effects on the regression when

a. testing marketing hypotheses about the determinants of demand b. analyzing inventory relative to capacity requirements c. forecasting unit sales for operations planning d. sales revenue reaches its peak e. planning for capital budgets

Economics

Marginal utility is the

A) total satisfaction received from consuming a given number of units of a product. B) average satisfaction received from consuming a product. C) extra satisfaction received from consuming one more unit of a product. D) satisfaction achieved when a consumer has had enough of a product.

Economics