In the national income accounts, depreciation is called
a. "consumption of fixed capital."
b. "negative investment."
c. "diminished value."
d. "loss due to wear."
a
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A straight-line demand curve has an elasticity that becomes smaller as we move from left to right along the schedule.
Answer the following statement true (T) or false (F)
Because of scarcity, rationing is
A) unimportant because people get what they want. B) necessary because people cannot get everything they want. C) unimportant because prices clear markets. D) not a problem because governments can determine what everybody wants.
When the market price has fallen below a firm's ATC but is above its AVC, in the short run, the firm:
A. can minimize its losses by staying open. B. is earning positive profits. C. then a firm is covering all of its fixed costs, but not all of its variable costs. D. then MC must be greater than MR.
A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts. The firm wants to minimize the net cost of warehouse thefts. 
Given the above info, if the cost of a stolen radio is $25, what is the MOST the firm would be willing to pay to hire the first security guard?
A. $200 B. $250 C. $750 D. $500