If products similar to the intermediate good can be bought externally, an approximation of the correct transfer price is
a. average costs
b. average fixed costs
c. average variable costs
d. the market price
d
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The supply curve of a good or service is the same as
A) the demand curve. B) the marginal benefit curve. C) the marginal cost curve. D) the total surplus curve. E) None of the above answers is correct.
Sonia works at a restaurant where tips are pooled and divided equally. Anna works at a different restaurant where she keeps the tips her customers leave for her. Which of the following is true?
a. Both work equally hard because their hourly wage from the employer is low, and they can make up for this with tips. b. Sonia works harder, because she receives the same amount of tips as other workers. c. Anna works harder, because she works at an expensive restaurant. d. Anna works harder, because her tips are her private property. e. Neither of them has an incentive to work hard because tips are a small part of their earnings.
The correct ranking of degree of market power (from highest to lowest) is
A. Oligopoly, monopoly, monopolistic competition, perfect competition. B. Monopoly, monopolistic competition, oligopoly, perfect competition. C. Monopoly, oligopoly, monopolistic competition, perfect competition. D. Monopoly, monopolistic competition, perfect competition, oligopoly.
An international agreement from 1947 designed to lower tariffs was
A) the General Agreement on Tariffs and Trade. B) the World Trade Organization. C) the World Agreement on Tariffs and Trade. D) the Trade and Tariff Agreement.