If the price of a fixed factor of production increases by 50 percent, what effect would this have on the marginal-cost schedule facing a firm?
A. None, because fixed costs do not affect marginal cost
B. Marginal cost would increase by 50 percent
C. Marginal cost would increase by less than 50 percent
D. Marginal cost would increase by more than 50 percent
A. None, because fixed costs do not affect marginal cost
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Under the current managed float exchange rate regime; countries with surpluses in their balance of payments frequently do not want to see their currencies appreciate because it makes their goods ________ expensive abroad and foreign goods ________ in
their countries. A) more; cheaper B) more; costlier C) less; cheaper D) less; costlier
Which of the following is the correct way to describe equilibrium in a market?
a. At equilibrium, demand equals supply. b. At equilibrium, quantity demanded equals quantity supplied. c. At equilibrium, market forces are no longer at work. d. Equilibrium is a tendency, a state of perpetual motion. e. Equilibrium is the best combination of price and quantity.
Inventory investment can be:
A. zero only. B. negative, zero, or positive. C. negative only. D. positive only.
Suppose your donut shop earns $25,000 in total revenues per month with explicit costs of $15,000 and opportunity costs of $8,000. Your accounting profit is
A. $2,000. B. zero. C. $48,000. D. $10,000.