Consider a car dealership advertises a three-year lease at $250 per month. When you arrive to apply, you discover that the lease requires a downpayment of $3600 dollars. You will undertake the lease if
A) you value the lease at least $350 per month.
B) you value the lease at least $250 per month, the $3600 is a sunk cost.
C) you value the lease less than $350 per month.
D) you value buying a new car at $400 per month.
A
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The figure above shows the market for coffee. If 30 pound of coffee a month are available, the ________ price that consumers are willing to pay for the last pound is ________
A) maximum; $4.00 B) minimum; $4.00 C) maximum; $2.50 D) minimum; $2.50
The preferences of the representative consumer over consumption and leisure are represented by use of a
A) production function. B) utility function. C) benefit function. D) preference function.
The major source of financing in the Anglo Saxon model is:
a. Securities markets b. Secondary market financing c. The sale of treasury bonds d. Bank financing e. None of the above
The shape of the total-cost curve is inversely related to the shape of the production function
a. True b. False Indicate whether the statement is true or false