In the case study discussed in the chapter, the electronics firm was actually enhancing its profits by selling calculators at a price that was below average cost
a. True
b. False
Indicate whether the statement is true or false
True
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The town of Marble Falls has 10 workers, of which 8 are employed and 2 are actively seeking work. The unemployment rate in Marble Falls is
A) 5%. B) 10%. C) 20%. D) 25%.
Christy's Haircuts, the sole supplier of haircuts in a small town, faces the demand schedule shown in the table above. What is Christy's marginal revenue from the 25th haircut?
A) zero B) $5.00 C) $17.50 D) $50.00
If the Fed ________ the money supply, the user cost of capital will ________ and V* will ________
A) increases; increase; increase B) increases; decrease; increase C) decreases; decrease; decrease D) decreases; decrease; increase
Regarding the law of supply, which of the following statements is correct?
A) As the price of a good or service rises, the quantity supplied will increase. B) As the price of a good or service rises, the quantity supplied will decrease. C) The ceteris paribus assumption does not apply. D) As demand falls, supply rises.