Suppose Sam's Shoe Co. makes one kind of shoe. An example of a fixed cost for this company would be:
A. the lease for the factory building.
B. the leather needed to make the shoes.
C. the needles for the sewing machines that need to be replaced after sewing every 1,000 pairs.
D. All of these are examples of fixed costs.
A. the lease for the factory building.
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In the later part of the twentieth century, the price of crude oil began to increase after decades of relatively steady prices, which of the following could explain this phenomenon?
A) Worldwide reserves have been increasing. B) Worldwide demand has been increasing. C) Global warming D) Extraction technology has been degrading.
A successful and stable cartel can be established if there are
A) many firms producing a storable product. B) many firms producing a perishable product. C) a few firms producing a storable product. D) a few firms producing a perishable product.
The idea of efficiency is used to address which of the following questions?
A. What are the wants and constraints of those involved? B. What are the trade-offs? C. How will others respond? D. Why isn't everyone already doing it?
In practice, taxes on emissions of pollutants have been found to
A. be ineffective in encouraging firms to pollute less. B. significantly reduce pollution by taxed firms. C. be less reliable in reducing pollution than direct controls on pollution. D. cause failures of the pricing system.