When output is 1,
A. marginal cost equals variable cost.
B. total cost equals average total cost.
C. total cost equals fixed cost plus variable cost.
D. All of the choices are correct.
D. All of the choices are correct.
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Indirect utility functions are homogeneous of degree 1 in income.
Answer the following statement true (T) or false (F)
The price elasticity of demand for a rental home in Luxury Resorts in the summer is 1.25 and is 2.25 in the spring. If Luxury Resorts faces a constant marginal cost of $500 per home rental, what is the profit-maximizing off-peak load price to charge in the spring?
A) $1,250 B) $500 C) $2,500 D) $900
Refer to Scenario 9.9 below to answer the question(s) that follow. SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week). The business is open 52 weeks per year.Refer to Scenario 9.9. The business is earning exactly a normal profit. Thus, the average price per greeting card must be
A. $1.52. B. $2. C. $4. D. $6.
Which of the following accurately describes economic growth and standards of living between 1,000,000 B.C. and 1300 A.D.?
A) No sustained economic growth occurred between 1,000,000 B.C. and 1300 A.D. B) Significant economic growth took place between 1,000,000 B.C. and 1300 A.D. C) Standards of living substantially declined from 1,000,000 B.C. to 1300 A.D. D) Standards of living in 1300 A.D. were substantially better than what they were in 1,000,000 B.C.