The bargaining power of suppliers increases if
A) the input supplied is relatively standardized.
B) the input in question is not a critical component of production.
C) the cost of switching suppliers is relatively low.
D) there are only a few competitors to the supplier.
D
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Land on both sides of the border of Brazil and Venezuela has long been occupied by the Yanomamo people. These “fierce people” are the last Stone Age tribe left in South America. Following discovery of gold, approximately 45,000 garimpeiros (gold miners) invaded the Yanomamo territory. The mining process pollutes the rivers and scares away game, so traditional Yanomamo sources of food are almost impossible to find now. The Yanomamo are starving. Economists call this problem
A. the cost disease. B. an externality. C. specialization. D. rent seeking.
If fixed cost is $5,000, and, at an output of 3 variable cost is $4,000, how much is average total cost at an output of 3?
A. $1,333.33 B. $3,000 C. $4,500 D. $9,000
If Bella eats one piece of pie, she gains a utility of 10. If she continues, a second piece yields a marginal utility of 8, a third will yield a marginal utility of 2, and a fourth piece of pie will yield a marginal utility of -2. We can say:
A. Bella's total utility will decrease if she eats the third piece of pie. B. Bella's marginal utility is not diminishing. C. Bella's total utility will be maximized if she eats three pieces. D. Bella's total utility decreases after the first piece of pie.
Refer to Scenario 7.2 below to answer the question(s) that follow. SCENARIO 7.2: You are the owner and only employee of a company that sets odds for sporting events. Last year you earned a total revenue of $100,000. Your costs for rent and supplies were $50,000. To start this business you invested an amount of your own capital that could pay you a return of $20,000 a year. Refer to Scenario 7.2. During the year your economic costs were
A. $70,000. B. $60,000. C. $50,000. D. $20,000.