Explain how selling costs influence a firm's cost curves and its average total cost
What will be an ideal response?
Selling costs increase a firm's fixed cost, which increase the firm's total cost. This means that an increase in selling costs shifts the average fixed cost (AFC) curve and the average total cost (ATC) curve upward. Variable costs do not change, so the marginal cost (MC) and average variable cost (AVC) curves remain unchanged.
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How are the current account and the financial account related?
What will be an ideal response?
An unfavorable balance of trade occurs when:
a. exports equal imports. b. the balance of payments balances. c. the current and capital account in the BOP are equal. d. the value of the exports of goods exceeds the value of the imports of goods. e. the value of the exports of goods is less than the value of the imports of goods .
Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
Which of the following statements is true?
A. For Lee, seeing a documentary is a dominant strategy. B. Lee's dominant strategy depends on Jordan's choice. C. For Lee, seeing a comedy is a dominant strategy. D. Lee does not have a dominant strategy.
It is generally easier to prevent deforestation than fishery collapse because:
A. it is easier to establish and enforce property rights on national lands than in international waters. B. there is greater incentive to have sustainable forests than sustainable fisheries. C. the demand for wood products has dropped significantly while the demand for fish has grown significantly.