Why is judging trends in economic indicators important to managers?
What will be an ideal response?
Managers need to be able to react to both monetary and fiscal policy changes and other changes in aggregate spending in order to determine the optimal strategies for their firms and industries. Managers need to examine and make judgments about the trends in a variety of economic indicators which is a difficult one as different indicators may given conflicting signals as to the future course of the economy.
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A monopolist faces an average total cost of $10 when it produces 400 units of its product. If it sells the 400 units at $6 per unit, ________
A) the monopolist makes a profit of $600 B) the monopolist makes a loss of $600 C) the monopolist makes a profit of $1,600 D) the monopolist makes a loss of $1,600
Which of the following public policies is an example of a price ceiling?
A) Support prices for agricultural commodities B) Minimum wage laws C) Rent control program D) all of the above
In the circular-flow diagram, factors of production include land, labor, and capital
a. True b. False Indicate whether the statement is true or false
A key characteristic of a competitive market is that
a. government antitrust laws regulate competition. b. producers sell nearly identical products. c. firms minimize total costs. d. firms have price setting power.