In 1976, the cost of a movie was $4. In 2012, it's $9. If the CPI for 1976 is 56, and 228 for 2012, to find the real 2012 value of a 1976 movie, we would multiply its nominal value in 1976 by the ratio of:
A. (56/228).
B. (228/56).
C. (9/5).
D. (5/9).
B. (228/56).
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An example of a barrier to entry is
A) superior technological knowledge. B) high profits. C) product differentiation. D) increasing marginal costs.
Public policy responses to monopolies:
A. aim to break up existing monopolies. B. prevent new monopolies from forming. C. ease the effect of monopoly power on consumers. D. All of these statements are true.
The marginal factor cost (MFC) is the:
a. value of the additional output that an extra unit of a resource can produce. b. additional cost of employing an additional unit of a resource. c. additional cost of producing an additional unit of output. d. the ratio of the total fixed cost to the total cost of production. e. ratio of total cost to the total amount of resources employed.
Assume Brad worked as a contractor for a year and had revenues of $120,000 and explicit cost of $70,000 . If he could have been paid $80,000 working for a computer company, his:
a. accounting profit equaled $10,000 and he would be rational to stop working as a contractor. b. accounting profit equaled $50,000 and he would be rational to continue working as a contractor. c. economic profit equaled $50,000 and he would be rational to continue working as a contractor. d. economic profit equaled -$30,000 and he would be rational to stop working as a contractor.