A weighted output maximization could serve as a reasonable pricing guideline
Indicate whether the statement is true or false
T Such a pricing guideline would keep the firm from exploiting less elastic demand curves and allows the firm less discretion than the breakeven constraint, but it does not maximize welfare and is not as good in that respect as Ramsey pricing.
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Consider an apple orchard owner deciding how to incentivize his fruit pickers. He pays per pound harvested but adjusts the compensation rate higher during poor harvest seasons. As a consequence
a. The compensation rate should be fixed at all times b. The pickers might try to game the system by discouraging others from harvesting too much c. The pickers would claim good harvests in order to be paid higher piece rates even during poor harvest seasons d. None of the above
The term opportunity cost refers to the
A. Financial costs of all the factors of production used to produce a good or service. B. Value of every other good given up when a good or service is obtained. C. The most desired good or service given up when something is obtained. D. Amount of resources used to produce a good but not a service.
The theory that there are no predictable trends in securities prices that can be used to "get rich quick" is the
A) dartboard theory. B) random walk theory. C) Wall Street theory. D) inefficient market hypothesis.
A decline in money supply will lead to a(n) ________ if nominal wages are rigid
A) increase in labor demand B) fall in real wages C) fall in labor demand D) increase in real output