Between 1988 and 1989, the price of retail space in Ginza, Tokyo’s premier commercial and entertainment center, rose from $400 to $625 per square foot. This was the result of an increase in demand in the face of a perfectly inelastic supply curve for retail space. Economists call this
A. monopoly profit.
B. economic rent.
C. usury.
D. marginal revenue product.
Answer: B
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Refer to Figure 11-9 above to solve the following problems
a. Calculate the fixed cost of production. b. Calculate the average total cost of production when the firm produces 20 units of output. c. Calculate the average variable cost of production when the firm produces 20 units of output. d. Calculate the average fixed cost of production when the firm produces 20 units of output. e. Calculate the average fixed cost of production when the firm produces 15 units of output. f. If the firm increases output from 15 to 20 units, what is the marginal cost of output?
Which of the following policies supports the concept of continual adjustment of the money supply to achieve macroeconomic goals?
A. Restrictive policy. B. Fixed rules. C. Discretionary policy D. Fiscal policy.
The substantial increase in clear property rights has severely impeded growth in many developing countries.
Answer the following statement true (T) or false (F)
One worker produces 10 rocking chairs. If diminishing returns have already set in, a firm will need to hire more than two workers to produce 20 rocking chairs.
Answer the following statement true (T) or false (F)