Output for a simple production process is given by Q = 2KL, where K denotes capital, and L denotes labor. The price of capital is $25 per unit and capital is fixed at 8 units in the short run. The price of labor is $5 per unit. What is the total cost of producing 80 units of output?
A. $233
B. $525
C. $200
D. $225
Answer: D
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Which of the following describes the difference between the market demand curve for a perfectly competitive industry and the demand curve for a firm in this industry?
A) The market demand curve is downward sloping; the firm's demand curve is a vertical line. B) The market demand curve is downward sloping; the firm's demand curve is a horizontal line. C) The market demand curve is a horizontal line; the firm's demand curve is downward sloping. D) The market demand curve can not have a constant slope; the firm's demand curve has a slope equal to zero.
Bureaucratic capture occurs when:
A. industries become halted in their ability to continue operating due to over-regulation of the market. B. professionals from one particular industry hold the majority of positions in one particular government office. C. government positions are filled by people with close ties to the group they are supposed to regulate D. lobbyist groups become so powerful that they essentially have a stranglehold on policymakers.
The difference between the total revenue and total cost curves at a given output is equal to
A. Average revenue. B. Average total cost. C. Either profit or losses depending on the curves relative position. D. Profit per unit.
Kate receives two free passes to the waterpark for her birthday. She's not a huge fan of waterparks, and, therefore, would not buy such tickets for their face value of $90. Kate decides to use the tickets. This type of behavior is explained with the concept of:
A. the implicit cost of ownership. B. ignoring sunk costs. C. the fungibility of money. D. None of these.