A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts. The firm wants to minimize the net cost of warehouse thefts. 
Given the above info, if each security guard is paid $200 a week and the cost of a stolen radio is $25, how many security guards should the firm hire?
A. 1
B. 2
C. 3
D. 4
E. 5
Answer: B
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Assume the market for cage-free eggs is perfectly competitive. All else equal, as more farmers choose to produce and sell cage-free eggs, what is likely to happen to the equilibrium price of the eggs and profits of these farmers in the long run?
A) The equilibrium price is likely to remain unchanged and profits are likely to increase. B) The equilibrium price is likely to decrease and profits are likely to decrease. C) The equilibrium price is likely to increase and profits are likely to increase. D) The equilibrium price is likely to increase and profits are likely to remain unchanged.
A backward-bending portion of an individual labor supply curve is most likely to be observed: a. at lower wages
b. at higher wages. c. in manufacturing industries. d. in service industries.
Each of the following is a provision of the 1996 welfare reform law except that
A. the federal guarantee of cash assistance for poor children is ended. B. the head of every welfare family would have to work within 2 years or the family would lose benefits. C. after receiving welfare for two months adults must find jobs or perform community service. D. women who have more children while on welfare will have their benefits reduced.
Answer the following statements true (T) or false (F)
1. A decrease in the prices of computer chips for PCs will increase the supply of PCs. 2. The development of a new production technique that lowers the cost of producing 3-D movies will shift the supply curve of 3-D movies to the right. 3. A surplus indicates that the quantity demanded is greater than the quantity supplied at that price. 4. If we observe the price of a good in a competitive market rising, then we can conclude that there had been a shortage in the market.