A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 per wash, and the price of workers is $60 per day. The car wash should hire a fifth worker if it would increase total production to at least
a. 92 cars per day.
b. 100 cars per day.
c. 104 cars per day.
d. 110 cars per day.
A
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A small business owner has a line of credit from a bank with a nominal interest rate of seven percent
For several years, the price level has been rising at an annual rate of two percent, but the owner has just read in the newspaper that economists expect next year's inflation rate to be four percent or more. Assume that this owner may either continue the line of credit at seven percent, or renegotiate to alter both the size of the credit and the interest rate. What reason might there be for the owner to keep the credit terms as is? What argument might justify changing the credit agreement?
Nonprofit, or not-for-profit, firms
a. maximize revenue instead of profit b. minimize cost rather than maximize profit c. often pursue goals other than profit maximization d. pursue profit as their main goal despite their name e. have no incentive to produce efficiently
Minimum wage laws are always beneficial to low-wage workers
Indicate whether the statement is true or false
?
In Exhibit 3-7, if price happened to currently be $25 in this market, a _______ would result, causing a _______ in price.
A. shortage; increase B. shortage; decrease C. surplus; increase D. surplus; decrease