Which of the following variables is left out of the simple economic model of the firm?
a. the marginal cost of production
b. consumer tastes and preferences
c. the fact that many firms actually earn profits
d. the entrepreneurial decision-making process
D
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Two types of costs must be considered when selecting the optimal decision rule. They are _____ and _____
a. decision-making costs; external costs b. marginal costs; variable costs c. decision-making costs; political costs d. political costs; external costs
According to the World Bank, almost 2 billion people are classified as being in severe poverty.
Answer the following statement true (T) or false (F)
Taylor's marginal utility from watching movies and from eating out (in utils) is shown in the accompanying table. Taylor spends exactly $100 every month on these two forms of entertainment; the price of each movie is $10 and the price of each dinner is $20.MoviesPer MonthMarginal UtilityPer MovieDinners OutPer MonthMarginal UtilityPer Dinner160115025021403203120454100 If Taylor eats out 3 times a month, Taylor will watch ________ movies, and have marginal utility per dollar of ________ from eating out and a marginal utility per dollar of ________ from going to the movies.
A. 3; 4; 4 B. 4; 6; 1/2 C. 3; 2; 6 D. 4; 6; 2
A period when the economy shrinks is known as
A. a slump. B. a recession. C. a contraction. D. all of the above.