One feature of the new textbook market is that publishers face ________ fixed costs and ________ variable costs.
A. high; high
B. low; low
C. low; high
D. high; low
Answer: D
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If the dollar is overvalued against the peso, it implies that:
A) the exchange rate between the dollar and the peso is flexible. B) the quantity of dollar supplied in exchange of pesos equals the quantity of dollars demanded in exchange of pesos in the foreign exchange market. C) the quantity of dollar supplied in exchange of pesos exceeds the quantity of dollars demanded in exchange of pesos in the foreign exchange market. D) the quantity of dollar supplied in exchange of pesos is less than the quantity of dollars demanded in exchange of pesos in the foreign exchange market.
Which of the following financial institutions does NOT have to meet minimum reserve ratios?
i. the Fed ii. commercial banks iii. credit unions A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
Why are foreign investors more likely to invest in U.S. government bonds than in U.S. corporate stocks and bonds?
What will be an ideal response?
A wheat farmer sells wheat in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of wheat is $2 a bushel, the wage rate is $10, the farmer employs five workers and the marginal product of the fifth worker is 10 bushels. What would you advise this farmer to do?
A. Reduce the product price so that the wage and marginal revenue product will be equal. B. Increase employment because the wage paid is less than the marginal revenue product. C. Do nothing because the wage rate and the marginal product of the last worker hired are equal. D. Reduce employment because the wage paid is less than the marginal revenue product.