If fixed cost rises,
a. the profit maximizing level of output would decrease.
b. the profit maximizing level of output would not change.
c. marginal cost rises.
d. variable cost falls.
b
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Which of the following statements is true?
A) If the opportunity cost of current consumption is high, people will save less. B) If the opportunity cost of current consumption is high, the inflation rate will increase. C) If the opportunity cost of current consumption is high, the unemployment rate will decrease. D) If the opportunity cost of current consumption is high, people will save more.
Would the shopkeeper be able to convince the customer that he would usher the customer out if he gets a low price?
a. Yes, such threats are always credible b. No, because losing the sale is not in the shopkeeper's best interest c. No, because he would get more by accommodating the low price than losing the sale d. Both B&C
Based on economic criteria, a nation should choose a fixed exchange rate if:
A) the monetary authorities are capable of handling shocks. B) the net benefits of fixing versus floating are positive. C) the net benefits of fixing versus floating are negative. D) there is a liberal political agenda that restricts government authority over capital flows.
A secure monopolist charges a higher price than an insecure monopolist.
Answer the following statement true (T) or false (F)