Recall the Application about the manufacture of fake killer whales used to scare sea lions off the Washington coast to answer the following question(s).Recall the Application. What is the indivisible input and what are its implications for economies or diseconomies of scale?
What will be an ideal response?
The mold used to produce each fake killer whale is the indivisible input and it implies the firm will, at least for some increases in output, face economies of scale.
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If a competitive firm maximizes short-run profits by producing some quantity of output, which of the following must be TRUE at that level of output?
A) p = MC B) MR = MC C) p ? AVC D) All of the above
Which of the following is NOT true of a demand curve?
A. It reflects sellers' reservations prices. B. It relates the price of an item to the quantity demanded of that item. C. It has negative slope. D. It shows the amount consumers want to buy at various prices.
Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900.For Sam, cutting his price to $2.90 per gallon is a:
A. revenue-maximizing strategy. B. profit-maximizing strategy. C. dominant strategy. D. dominated strategy.
Investment includes:
A. the purchase of medical supplies by the National Guard. B. an increase in corporate stock volumes during the year. C. an increase in government purchases. D. an increase in business inventories.