This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, fixed costs must be:
A. $200.
B. $10.
C. $60.
D. Fixed costs cannot be determined by the information in the table.
Answer: B
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Elena works as a housekeeping staff member in a hotel. Her task is to clean the rooms that are unoccupied by guests. Because it is not possible for her boss to monitor her work regularly, she often skips cleaning some of the rooms
a) What is the term used to refer to such behavior? b) How can the management motivate workers like Elena to work harder?
When there are credit market frictions, Ricardian equivalence may not hold because
A) consumers cannot understand the implications of the government budget constraint. B) a tax cut in the present with a future increase in taxes works effectively like a loan. C) an increase in government saving is matched one-for-one by a decrease in private saving. D) social security is fully-funded.
If the Canadian dollar depreciates, holding other things constant, it makes Canadian imports
a. More expensive for Canadian customers b. Less expensive for Canadian customers c. Neither more or less expensive for importers d. None of the above
In a perfectly balanced oligopoly (with eight firms, all having the same market share), if any one firm captures 1 percent of the market from one of the others,
a. c and d b. the eight-firm concentration ratio will increase c. the eight-firm concentration ratio will decrease d. the Herfindahl-Hirschman index will rise e. the Herfindahl-Hirschman index will fall