Economic Investment:
What will be an ideal response?
spending for the production and accumulation of capital good and additions to inventories
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Between 1945 and 1985, the number of farms declined and the average farm size increased, both of which suggest that
a. people were eating less food b. price support programs were enriching farmers c. farm incomes decreased d. land prices decreased e. large-scale farming was more efficient than small-scale farming
Refer to the accompanying graph. The short-run profit-maximizing output for the monopolistic competitive firm is:
A) 0 (zero)units per week.
B) 50 units per week.
C) 60 units per week.
D) 85 units per week.
E) 90 units per week.
This graph depicts the demand for a normal good.
A shift from A to B in the graph shown might be caused by:
A. a decrease in the price of a substitute.
B. a decrease in the price of a complement.
C. an increase in the price of a complement.
D. an increase in the good's price.
Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. If Larry were to decrease the production of lassos, which of the following is true regarding the company's costs?
A. The variable costs of rope would drop to zero. B. The fixed cost of the rope cutting machine would stay the same. C. The fixed cost of the employee's wages would stay the same. D. None of these is true.