The Toys-R-Danger-Us Toy Company can produce 500 water pistols for a total cost of $1,400 . The company can also produce 1,000 water pistols for a total cost of $3,000 . but it would have costs of $200 even if it produced no water pistols. Which of the following is true?
a. Total cost is increasing at a decreasing rate.
b. Total cost is increasing at a constant rate.
c. Marginal cost is positive and increasing as output increases.
d. Variable cost is positive and decreasing as output increases.
e. Fixed cost is positive and decreasing as output increases.
C
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When the economy slips into a recession, normally the demand for bonds ________, the supply of bonds ________, and the interest rate ________, everything else held constant
A) increases; increases; rises B) decreases; decreases; falls C) increases; decreases; falls D) decreases; increases; rises
Which of the following is most likely to be a feature of a contingent contract?
A) A CFO is paid $250,000 if he does a good job. B) A VP of Sales is given options as part of her salary. C) Both A and B. D) None of the above.
When government decides to use fiscal policy:
A. the information for how much to change taxes is readily available. B. the expedited process of approval aids with quick enactment. C. it always keeps the economy closer to potential GDP than it otherwise would be. D. It may take time to implement it.
If the demand curve for wedding cakes shifts to the right, then the value of the marginal product of labor for bakers will
a. rise. b. fall. c. remain unchanged. d. rise or fall; either is possible.