______ is the cost of inputs whose use does not vary as the firm's output changes.
A. Sunk cost
B. Fixed cost
C. Total cost
D. Explicit cost
B. Fixed cost
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Refer to Game Matrix III. Which of the following is a property of this game?
Game Matrix III
The following questions refer to the game matrix below. Each firm has a choice of advertising, Ads, or not advertising, No ad. The profits each gets depend upon which it chooses.
a. Both firms have dominant strategies.
b. There is no pure strategy Nash equilibrium.
c. There is a Nash equilibrium and it is Pareto optimal.
d. There is a Nash equilibrium and it is not Pareto optimal.
A soda factory employs seven workers and produces 500 bottles of soda a day. The company reduces the workforce to six workers and output is now 450 bottles a day. The seventh worker:
A. had a lower marginal product than the sixth worker. B. caused average product to fall. C. had a marginal product of 50 bottles of soda. D. All of these are true.
When the wage falls:
A. all workers will work more hours. B. all workers will work fewer hours. C. some workers will work more hours and some workers will work fewer hours, but on average, hours worked will fall. D. some workers will work more hours and some workers will work fewer hours, but we don't know whether average hours will increase or decrease.
Suppose that the quantity of hamburgers is measured along the vertical axis and that the number of bags of popcorn is measured along the horizontal axis. The budget constraint has a vertical intercept of 10 hamburgers, and the slope of the line is -1. If the price of popcorn doubles, we know that
A. the vertical axis of the budget line shifts to 5 hamburgers. B. the consumer will buy half as many bags of popcorn as before. C. the new equilibrium will have a marginal rate of substitution of -2. D. the new equilibrium will have a marginal rate of substitution of -0.5.