You are a member of your city's cable television regulatory commission. For the third time this year, the local cable provider has come before the commission, asking for a rate increase. This time it is to cover the cost of new, state-of-the-art cable
relay equipment. Last month it was for money for advanced training for cable installers. The time before that, it wanted to cover the cost of new office equipment. How do you explain the cable company's behavior?
Your commission has probably set a fair price for the cable company, allowing it to charge a price that
covers its average total cost. Now, the cable company isn't particularly concerned with keeping costs under
control. If its costs rise, it will just ask the commission for a price increase.
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When a transfer price is set lower
a. the profits of the division producing the intermediate product will rise b. the profits of the division producing the intermediate product will fall c. the costs of the division producing the intermediate product will rise d. the costs of the division producing the intermediate product will fall
Which of the following about costs is always true?
a. When marginal costs are less than average total costs, average total costs will be decreasing. b. When average fixed costs are falling, marginal costs must be less than average fixed costs. c. When average fixed costs are rising, marginal costs must be greater than average total costs. d. When marginal costs are greater than average total costs, average total costs will be decreasing.
What will be the amount owed at the end of one year if a borrower charges $100 on his/her credit card and doesn't make any payments during the year (assume the interest rate is 1.5% per month)?
What will be an ideal response?
Tony left his job three months ago to go back to school full time. He will complete his degree in about three years and then seek a new job. Based on this description, Tony is best described as:
A. frictionally unemployed. B. cyclically unemployed. C. structurally unemployed. D. not in the labor force.