When a firm is considering whether to buy a new piece of equipment with retained earnings, the amount of interest that could be earned on that money is an explicit cost and should be treated as such
Indicate whether the statement is true or false
FALSE
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A government's policy to lower the exchange rate is called ____________
a. an import control b. sinking a floating exchange rate c. appreciating the currency d. floating the exchange rate e. devaluation
Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when the firm hires 4 workers, the firm produces 50 units of output. If the fixed cost of production is $4, the variable cost per unit of labor is $20, and the marginal product of labor for the fifth unit of labor is 2,
what is the average total cost of production when the firm hires 5 workers? a. $2.00 b. $20.00 c. $20.80 d. $22.80
A political structure's enfranchisement refers to:
A. the government's ability to expand its power. B. which territories are restricted by particular laws. C. who has the right to vote. D. which territories are protected under particular laws.
Real wages more accurately reflect the payment to labor because they are adjusted for the effects of inflation.
Answer the following statement true (T) or false (F)