Ford Motor Company started producing the Model A at plants scattered around the United States
A) to locate its production centers closer to its customers.
B) because it was not able to attract skilled workers in Michigan (where its first plant was located).
C) because diseconomies of scale at its initial River Rouge plant resulted in high production costs.
D) to save on transport costs.
C
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The costs of investment depend on the ________ and the ________.
A. price of new capital goods; real interest rate B. relative price of the firm's output; real interest rate C. marginal product of capital; relative price of the firm's output D. taxes levied on the revenue generated; relative price of the firm's output
Jake opens a pig farm in Idaho. To start his farm, he uses his entire $50,000 of savings from his savings account. The bank was paying him $2,500 interest on his saving. Explain why the $2,500 is one of Jake's costs
What will be an ideal response?
A tennis pro charges $15 per hour for tennis lessons for children and $30 per hour for tennis lessons for adults. The tennis pro is practicing
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination. E) fifth-degree price discrimination.
Which is a reason why there is no advertising by individual firms under pure competition?
A. Firms produce a homogeneous product. B. Firms do not make long-run profits. C. The quantity of the product demanded is very large. D. The market demand curve cannot be increased.