An increase in a retailer's "overhead expenses"
A) compels the retailer to raise prices.
B) enables the retailer to raise prices.
C) makes it profitable for the retailer to raise prices.
D) does not in itself make higher prices necessary, possible, or profitable.
D
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Which of the following are true in a graph of isoquants (with capital on the vertical and labor on the horizontal) assuming a given wage and rental rate.
A. All long-run cost minimizing input bundles lie on a ray from the origin. B. (a) is true only if the production technology is homothetic. C. All short-run cost minimizing input bundles lie on a horizontal line. D. (c) is true only if the production technology is homothetic. E. (a) and (c) are true. F. (b) and (c) are true. G. (a) and (d) are true. H. None of the above.
Although U.S. Steel is integrated into iron ore mining, it currently does not own any of the mines that supply its coking coal because:
a. the company has a high requirement of coking coal which cannot be supplied by a single mine. b. the coal prices are highly unpredictable and volatile. c. there are a limited number of coal suppliers. d. futures and options markets are available for coal.
Comparative advantage matters most in determining the efficient distribution of production over the world
a. True b. False Indicate whether the statement is true or false
Suppose that a $4 billion increase in government spending increases Real GDP by $60 billion, and that a $3 billion tax reduction increases Real GDP by $68 billion. In this situation, the tax multiplier is _______________ the government spending multiplier
A) less than B) greater than C) equal to D) none of the above