When a pharmaceutical company introduces a new drug, its research and development costs are ________, and the cost of the chemicals used in manufacturing the drug are ________.
A. start-up costs; variable costs
B. start-up costs; fixed costs
C. marginal costs; variable costs
D. fixed costs; start-up costs
Answer: A
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Catherine quit her job in order to look for a new one; therefore, she is best considered as
A) frictionally unemployed. B) structurally unemployed. C) cyclically unemployed. D) seasonally unemployed.
A monopolist has total cost TC = .1Q2 - 2Q + 100 and marginal cost MC = .2Q - 2 . Market demand is Q = 86 - P, implying that the firm's marginal revenue is MR = 86 - 2Q. Its profit-maximizing output is
a. 92 b. 46 c. 40 d. 20
Other things equal, an increase in aggregate supply will cause:
a. a decrease in equilibrium real GDP and a decrease in the equilibrium price level. b. an economic contraction. c. an increase in equilibrium real GDP and an increase in the equilibrium price level. d. cost-push inflation. e. a reduction in unemployment and a decline in inflation.
Performing cost/benefit analysis involves:
A. only those activities that provide an implicit monetary loss and gain. B. quantifying the costs and benefits associated with a given activity and deeming the activity worthwhile only if the costs exceed the benefits. C. quantifying the costs and benefits associated with a given activity and deeming the activity worthwhile only if the benefits exceed the costs. D. only those activities that provide an explicit monetary loss and gain.