If demand rises and supply falls, which of the following must be true?
a. The equilibrium price will rise.
b. The equilibrium price will fall.
c. The equilibrium price will not change.
d. The change in the equilibrium price is indeterminate.
a. The equilibrium price will rise.
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If controlling the level of military expenditures is the most important goal, the most appropriate type of procurement contract would be _____
a. fixed fee b. cost plus fixed fee c. cost plus percentage fee d. cost plus incentive fee
Evren wants to go into the donut business. For $500 per month he can rent a bakery complete with all the equipment he needs to make a dozen different kinds of donuts (K = l, r = 500). He must pay unionized donut bakers a monthly salary of $400 each
He projects his monthly production function to be Q = 5KL where Q is tons of donuts. a. With the current level of capital, what is the marginal product of labor? Is the marginal product diminishing? Explain. b. If Evren wishes to make 25 tons of donuts, how many bakers are required given the current level of capital? How much will it cost to produce this (total cost)? c. Derive Evren's short-run cost function with K=1. d. Derive the marginal cost curve from your answer to c. and show the relationship between the marginal cost and marginal product of labor.
Which of the following financial market developments has helped to remove financial constraints faced by people?
a. Online stock trading b. Bank credit cards c. Derivatives trading d. ATM/Debit cards
Economists assume that business firms attempt to maximize their profits
a. True b. False Indicate whether the statement is true or false