An airline decides to sell 5 seats that would otherwise remain unoccupied on a flight from California to Chicago for $300 each, instead of the regular price per ticket of $450 each. We can probably conclude that:
a. The marginal cost of providing each added seat on the flight was less than $300
b. The average cost of providing each seat on the flight was less than $300.
c. The marginal cost of providing each seat on the flight was less than $450 but more than $300.
d. The average cost of providing each seat on the flight was $450.
a
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A floating exchange rate is one that is allowed to move freely between two points that have been determined by an exchange treaty
a. True b. False
An industry with a Herfindahl-Hirschman index of 5,000 would have ____ firm(s).
A. 1 B. 2 C. 5 D. 10
Refer to the diagram. The initial aggregate demand curve is AD 1 and the initial aggregate supply curve is AS 1 . Demand-pull inflation in the short run is best shown as:
A. a shift of the aggregate demand curve from AD 1 to AD 2 .
B. a move from d to b to a.
C. a move directly from d to a.
D. a shift of the aggregate supply curve from AS 1 to AS 2 .
In contrast to government research and development, private sector R&D has: a. more impact on productivity since most government R&D focuses narrowly on military applications
b. more impact on productivity since most government R&D focuses narrowly on the service sector. c. more impact on productivity since most government R&D focuses narrowly on not-for-profit activities. d. less impact on productivity since the government is more motivated and able to hire better people and facilities. e. less impact on productivity since firms tend to hold back on research when results are easily copied.