Pete's Package Delivery Service currently makes deliveries only within the state, but now decides to expand the scale of its operation by serving the neighboring state as well. It is likely to find
a. total variable costs decline as diminishing returns set in
b. total fixed costs decline as more trucks cover a wider area
c. total variable costs rise as more fuel and drivers are needed
d. the price of hiring a worker falls as more workers are hired
e. profits rise as total costs remain constant
C
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Which of the following are required for economic growth?
i. more goods and services produced per hour of work ii. an increase in the average hours of labor per person iii. an increase in prices A) i only B) ii and iii C) ii only D) i and iii E) i and ii
Viceroy Vacations is deciding on how to price its vacation packages. Which of the following strategies would you suggest?
a. Price the flight, hotel and car separately b. Advertise it as an all-inclusive vacation c. Give them away as free vacations to everyone d. Close down your company. No one goes on vacations anymore
Which of the following is not an automatic stabilizer?
a. the minimum wage b. the unemployment compensation system c. the federal income tax d. the welfare system
Assume that tortilla chips and salsa are complements. When the price of tortilla chips decreases:
A. the demand for salsa increases. B. the demand for salsa decreases. C. the supply of salsa decreases. D. the demand for tortilla chips decreases.