The Yum Yum Bubble Gum Company rents space in a warehouse to store its inventory. The owner of the warehouse just lowered the rent he charges the Yum Yum Bubble Gum Company. Everything else equal, the rent decrease is likely to ________ Yum Yum's optimal level of inventory.
A. reduce to zero
B. decrease
C. not change
D. increase
Answer: D
You might also like to view...
If an increase in a person's income causes that person to buy more apples, then apples are
a. neutral with respect to price b. complements c. inferior goods d. normal goods e. substitute goods
Product differentiation:
A. refers to the attempt of firms to make their products look like those of the other firms in the industry and is used in a perfectly competitive market structure. B. refers to the attempt of firms to make real or apparent differences in essentially substitutable products look different in the minds of the consumers and is used in a monopolistically competitive market structure. C. leads to nonprice competition in a perfectly competitive market structure. D. leads to price equaling the minimum average total cost in the long run in a monopolistically competitive market structure.
Which of the following was NOT a reason why the signing and enforcement of the Montreal Protocol was relatively easy?
A. The production of substitutes for the CFCs appeared to be technologically unfeasible. B. The scientific evidence about the threat that chlorofluorocarbon compounds (CFCs) posed to the ozone was clear. C. Production of CFCs was concentrated primarily in a few large publicity-conscious firms in the European Union (EU) and the United States. D. The United States and the EU were less likely to be affected by ozone depletion because they are further from the equator than other countries.
Which of the following is not a consequence of the Fed changing the required reserve ratio?
A) Changes in the ratio are easily incorporated into banks' routine management. B) Decreasing the ratio will increase excess reserves. C) Increasing the ratio will decrease the amount of reserves banks have to loan. D) Changes in the ratio effectively places a tax on banks' deposit taking and lending activities.