Macy's spent $1 million to set up a customer surveillance system and spends $80,000 a year to maintain it. What would be the AVC and ATC of the system if it watched (a) 100,000 customers a year? (b) 1 million customers a year?
What will be an ideal response?
(a) AVC $.80; ATC $10.80 (b) AVC $.08; ATC $1.08
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Many East Asian currencies during the 1990s were
a. allowed to float freely b. pegged to the Japanese yen c. pegged to the U.S. dollar d. pegged to gold e. none of the above
Politicians tend to prefer
a. expansionary fiscal policy over contractionary policy. b. contractionary fiscal policy over expansionary policy. c. both contractionary and expansionary fiscal policy. d. discretionary fiscal policy over expansionary policy.
Which of the following statements best describes the potential gains from trade?
a. The potential for gains from trade may be especially low among the smaller and lower income countries of the world. b. The potential for gains from trade may be especially high among the smaller and lower income countries of the world. c. The potential for gains from trade may be especially high among the medium and larger income countries of the world. d. The potential for gains from trade may be especially high among the smaller and medium income countries of the world.
An effective price floor
A. Occurs when market prices are below equilibrium prices. B. Results in a shortage. C. Results in a surplus. D. Can occur due to collusion.