The Reliable Auto Repair Shop is earning a total revenue of $7,000. Its total fixed costs are $700, and its total variable costs are $2,500. The Reliable Auto Repair Shop?s profit is
A. -$1,800.
B. $3,800.
C. $4,500.
D. $6,300.
Answer: B
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Assume that a firm's production process is subject to increasing returns to scale over a broad range of outputs. Long-run average costs over this output will tend to
A) increase. B) decline. C) remain constant. D) fall to a minimum and then rise.
The exchange-rate arrangement that emerged from the Bretton Woods conference is often called a managed float standard
a. True b. False Indicate whether the statement is true or false
Which of the following activities can create an external cost?
a. Honking continuously while driving past a hospital. b. Reducing the use of plastic carry bags while shopping. c. Burying garbage under the soil and planting trees on it. d. Using smog controls on private cars.
After a recent spike in violent crime, the local police department wants to spend $550,000 on a new crime fighting initiative. If a human life is worth $9 million, the crime fighting initiative is worth the cost if it reduces the risk of someone dying from crime by at least
a. 3.5 percentage points. b. 5.5 percentage points. c. 6.1 percentage points. d. 9.0 percentage points.