The costs of inflation that arise from trying to reduce cash holdings are known as:
A. shoe leather costs.
B. menu costs.
C. chain-index costs.
D. diminishing costs.
Answer: A
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Inflation ________.
A. reduces the buying power of people on fixed incomes B. increases the buying power of everyone's income C. reduces the buying power of everyone's income D. increases the buying power of incomes that rise more slowly than prices
Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at 20ยข per pound when 500 pounds are grown. The demand for potatoes is Q = 10,000/p
If the long-run supply curve is horizontal, then how many firms will this industry sustain in the long run? A) 0 B) 100 C) 50,000 D) There is not enough information to answer.
A monopoly's goal using price discrimination is to increase
A) total revenue. B) marginal revenue. C) total profit. D) the per unit profit.
If X and Y are substitutes, the demand curve for X will shift to the right when the price of Y decreases
a. True b. False Indicate whether the statement is true or false