The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average fixed cost of producing 25 baseball hats per hour is
A) $1.60
B) $8.00.
C) $9.60.
D) More information is needed to answer the question.
B
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Because there is an imbalance of information in a lending situation, we must deal with the problems of adverse selection and moral hazard. Define these terms and explain how financial intermediaries can reduce these problems
What will be an ideal response?
People view alcohol and marijuana as perfect substitutes. This means that
A) individuals will consume either alcohol or marijuana, but not both, regardless of price. B) as the price of alcohol decreases, marijuana use decreases. C) the marginal utility for alcohol and marijuana is constant. D) Both B and C.
Suppose a consumer buys only food and clothing. If the quantity of food bought decreases while that of clothing remains the same, their marginal utility from food will: a. fall relative to the marginal utility of clothing
b. rise relative to the marginal utility of clothing. c. rise, but not as fast as their marginal utility of clothing rises. d. fall, but not as fast as their marginal utility of clothing falls.
A country will roughly double its GDP in five years if its annual growth rate is: a. 5 percent
b. 7 percent. c. 12 percent. d. 14 percent.