Using the graphical method to demonstrate the break-even point, which of the following statements is NOT true?
a. constant selling price per unit are represented by TR
b. constant variable cost per unit is represented by TC
c. variable costs increase at a constant rate of VC per unit of output
d. below the point where TR and TC intersect, operating profits are realized
e. all of these are true
a
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Refer to Table 2-16. Does either Estonia or Finland have an absolute advantage and if so, in what product?
A) Estonia has an absolute advantage in lumber. B) Finland has an absolute advantage in lumber. C) Estonia has an absolute advantage in cell phones. D) Finland has an absolute advantage in both products.
Suppose we observe the following 1-year interest rates:
Euro $ = 15% Euro SF = 12% The exchange rate is quoted as the dollar price of Swiss francs and is currently E = 0.40. (a) Given the information above, what is the 12-month forward rate? (b) Suppose the actual 12-month forward rate is not what you found from (a), but instead is $0.42. What would profit-seeking arbitrageurs do?
Usually, a commercial bank's depositors and its owners are the same individuals
a. True b. False Indicate whether the statement is true or false
Suppose you operate a factory that produces 500 lawn mowers a week. If your weekly variable cost is $40,000 and your weekly total cost is $50,000, the average:
A. cost of production is $80. B. fixed cost of production is $80. C. variable cost of production is $100. D. fixed cost of production is $20.