Which of the following examples involves variable costs
a. Last year, Gerard Industries paid $2 million for raw materials.
b. Gerard Industries pays $100,000 a year for rent.
c. Gerard Industry just made an annual insurance payment of $50,000.
d. The property tax rate for Gerard Industries remains at 2 percent.
a. Last year, Gerard Industries paid $2 million for raw materials.
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Explain the following statement: "In health insurance markets, moral hazard implies individuals will consume too much health care, whereas adverse selection implies too little health care will be consumed."
What will be an ideal response?
When the Federal Reserve System was established in 1913, its main policy goal was
A) keeping employment high. B) preventing bank panics. C) encouraging strong economic growth. D) promoting price stability.
What are the factors that can shift the supply of financial capital to a certain investment?
a. if people do not want to alter their existing levels of risk b. if the riskiness or return on one investment is the same as other investments c. if the riskiness or return on one investment changes relative to other investments d. if people do not want to alter their existing levels of consumption
If a manufacturer has a U-shaped long-run average total cost curve, then
a. it cannot correctly calculate the position of its fixed cost curve b. there is an output level such that producing one more unit increases average total cost c. there must be a large range of production over which the firm experiences constant returns to scale d. no two quantities of output can have the same average total cost e. there does not exist an output level such that producing one more unit decreases average total cost