Suppose we observe that the price of gasoline has been rising, even though the quantity of gasoline sold has been falling. We can conclude that
a. the law of supply does not hold for gasoline.
b. the law of demand does not hold for gasoline.
c. the demand for gasoline must have fallen.
d. the supply of gasoline must have fallen.
d. the supply of gasoline must have fallen.
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Burger King is paying $9 an hour to its workers. If the expected inflation rate equals the actual inflation rate and both are 10 percent a year, then to keep the real wage rate constant in a year the money wage rate must
A) fall to $8.10 an hour. B) rise to $9.45 an hour. C) rise to $10.00 an hour. D) rise to $9.90 an hour. E) stay at $9.00 an hour.
Which of the following statements about two-part tariffs is false?
A) Because each individual has a different individual demand curve, if there is just one entrance fee some consumers will be able to reap some consumer surplus. B) The producer cannot capture the entire consumer surplus because the entrance fee might discourage some potential consumers even though they would have been willing to pay a lesser entrance fee. C) For two-part tariff pricing to be successful, the producer must be able to identify two distinct customer groups. D) Two-part tariff pricing allows a producer to capture the entire consumer surplus.
One disadvantage of a sole proprietorship as a form of business organization is that
a. sole proprietorships cannot lower the transaction costs associated with contracting with resource owners b. sole proprietorships are less efficient than corporations, because they are less specialized in production c. owners of sole proprietorships can lose all their personal assets if the business is sued or fails d. owners of sole proprietorships generally find it difficult to negotiate separation agreements with the other partners in the firm e. owners of sole proprietorships generally have very little control over how they operate their businesses
If you, as sole proprietor of a corner grocery store, work 15 hours per day, six days a week but do not take a money wage payment, then the cost to your firm of your labor is your
a. opportunity cost and is considered an explicit cost b. opportunity cost and is considered an accounting cost c. opportunity cost and is considered an implicit cost d. explicit cost and is considered an opportunity cost e. implicit cost even though it is considered an explicit cost