Very Technical is a firm that sells computing equipment. It costs Very Technical $100 for each order of computer monitors and the variable cost of placing an order is $4 per monitor. Very Technical pays an annual holding cost of $10 per monitor. If Very Technical sells 6,000 computer monitors a year and they order 500 monitors, what is the total annual cost of the monitors?
A) $27,700
B) $21,500
C) $32,800
D) $35,700
A) $27,700
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In a monopolistically competitive market, the consumer receives the benefit of
A) production at minimum average cost. B) production where price equals marginal cost. C) product differentiation. D) allocative efficiency.
If the average height in the classroom were 5 feet 10 inches and Patrick Ewing, who is 7 feet tall, came in and sat down,
a. the average height would rise to 7 feet b. the marginal height would be 5 feet 10 inches c. the average height would not change d. the average height would rise somewhat e. the marginal height would rise
For a monopoly, for all units greater than one, the marginal revenue curve:
A. lies above the demand curve. B. lies below the average revenue curve. C. cannot be negative. D. All of these statements are true.
Which of the following thoughts do the Keynesian and the new Keynesian economists share?
a. The belief that wages and prices are not flexible in the short run b. The belief that the aggregate supply curve is always a horizontal line c. The belief that the government's role in the economy should be minimized d. The belief that the natural rate of unemployment in an economy is always zero e. The belief that prices are constant and that changes in aggregate expenditures determine equilibrium real GDP