Menu costs refer to the:
a. costs of changing price lists
b. start-up costs incurred by a firm that cannot be recovered.
c. costs of the alternatives that must be forgone in order to pursue a certain action..
d. costs of producing an extra unit of output.
a
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The Solow growth model tells us that the standard living in country A can be higher than in country B for all the following reasons, except
A) country A has lower population growth than country B. B) country A has a higher savings rate than country B. C) country A has a higher depreciation rate than country B. D) country A has higher total factor productivity than country B.
With which choice are you more likely to avoid Bid-rigging cartels?
a. Holding smaller auctions b. Holding larger auctions c. Holding frequent auctions d. Both B&C
For a fixed proportion production function, at the vertex of any of the (L-shaped) isoquants the marginal productivity of either input is a. constant b. zero
c. negative. d. a value that cannot be determined.
An economist at the University of Alaska at Anchorage has been asked to explain why the price of Alaskan crude oil has fallen recently. In order to develop a model, the professor should take which steps?
a. Identify the problem, develop a model based on simplifying assumptions and test the model to formulate a conclusion. b. Gather data on crude oil prices and seemingly unrelated variables in order to look for associations, then formulate a hypothesis based on those unexpected associations. c. Ask people in Alaska why they are not purchasing oil. d. None of these. The oil industry is controlled by a cartel; therefore price changes in the industry cannot be explained using economic theories.