Fernando charges the restaurant Flaming Fernando's $1,000 annually for use of his name. If Fernando increases the fee for use of his name
A) the restaurant's average fixed cost, average variable cost, average total cost, and marginal cost curves all shift upward.
B) the restaurant's average fixed cost, average total cost, and marginal cost curves shift upward.
C) the restaurant's average variable cost, average total cost, and marginal cost curves shift upward.
D) the restaurant's average fixed cost and average total cost curves shift upward.
D
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Yield management and price discrimination have enabled firms to increase profits and, at the same time
A) reduce transactions costs. B) capture some consumer surplus. C) reduce the cost of production. D) transfer some producer surplus to consumers.
What is the difference between a change in demand and a change in quantity demanded?
The NAIRU:
A. can change over time. B. is difficult to measure. C. occurs at the economy's level of potential output. D. All of these statements are true.
The Fed buys $1 million in bonds from a bond dealer. The bond dealer's bank experiences
A. an increase in assets of $1 million as its reserves increase and a decrease in liabilities as its transactions deposits fall. B. a decrease in assets of $1 million as the checking account of the bond dealer increased, and a decrease in liabilities as the bank's deposits with the Fed increased by $1 million. C. an increase in assets of $1 million as its reserves increase and an increase in liabilities of $1 million as the deposits in the bond dealer's transactions account increases by $1 million. D. no change in assets or liabilities. Assets both increased and decreased by the amount of the check.