Which of the following is an example of an organization using marginal analysis?
a. A government official considering what effect an increase in military goods production will have on the production of consumer goods.
b. A farmer hoping for rain.
c. A businessman calculating economics profits.
d. A hotel manager calculating the average cost per guest for the past year.
a
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The table above shows the total product schedule for Rick's Lawn Service, a yard care company. The average product of labor ________ when the 7th worker is hired
A) reaches its maximum B) equals 1 lawn mowed C) equals 28 lawns mowed D) equals 4 lawns mowed E) equals 2 lawns mowed
Assume a bottled water company is trying to decide on a new pricing strategy
Sound decision making would require the firm's managers to consider not only how consumers will respond to the product's own price, but how they will react to the price for the firm's product relative to the prices of similar products offered by the firm's competitors. Indicate whether the statement is true or false
The success of a predatory pricing strategy in an oligopolistic market depends on all of the following except:
A) the number of firms operating in the industry prior to enactment of the policy. B) how far the predatory price is below cost. C) the period of time for which the predatory price is in effect. D) the length of time over which recoupment of profits occurs.
Because the market demand curve slopes downward
a. each unit of a good is worth more than the market price b. each unit of a good is worth the market price paid for each c. each unit of a good is worth less than the previous units are worth d. diminishing marginal returns have set it e. the market is efficient