Suppose you were working for Richstone's bakery and calculating whether the bakery was making a profit, considering the recent increase in rent. You have the following data: P = $20, AVC = $10, AFC = $8 and quantity of birthday cakes produced a day is 20
a. loss of $10
b. profit of $10
c. profit of $20
d. profit of $40
e. loss of $40
D
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When a player randomly chooses the strategy to play, with each strategy given a fixed probability of being chosen, we say that the player is using
a. a mixed strategy. b. a pure strategy. c. a dominant strategy. d. a Stackelberg strategy.
The principle of opportunity cost
A) is applicable to all decision-making. B) only refers to monetary payments. C) is more relevant for firms than for individuals. D) is only relevant in economics.
Hyperinflations are usually made possible by
a. multinational corporations. b. highly mobile international capital. c. governments printing money rapidly. d. higher and higher tax rates.
When speculators begin to sell futures contracts, suppliers will
a. try to sell more in the spot market. b. store more of their crop to sell in the future. c. not have any incentive to change their plans. d. earn larger profits.