If a firm can increase output by hiring more workers, then
A. it will do so only if the cost of hiring the workers (and purchasing the materials) is more than the increase in revenues associated with the increase in sales.
B. it will never do so.
C. it will do so only if the cost of hiring the workers (and purchasing the materials) is less than the increase in revenues associated with the increase in sales.
D. it will always do so.
Answer: C
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Refer to Scenario 4 . Assume that the state originally spent one-half of its budget on schools and one-half on prisons
What was the production of schools and prisons? Could the same number be achieved after the price of producing prisons falls to $1.5 million and the price of producing schools rises to $2 million? Explain.
Harry's Hookahs incurs $700,000 per year in explicit costs and $500,000 in implicit costs. The company earns $1.4 million in revenues and has $3.7 million in net worth. Based on this information, what is the accounting profit for Harry's Hookas?
A) $200,000 B) $700,000 C) $900,000 D) $1.1 million
A risk-averse investor versus a risk-neutral investor:
A. will take the same risks as the risk neutral investor if the expected returns are equal. B. needs greater compensation for the same risk versus the risk neutral investor. C. will never take a risk, while the risk neutral investor will. D. needs less compensation for the same risk versus the risk neutral investor.
If the national debt is owned by domestic citizens,
A. the debt will not have to be repaid. B. future interest payments transfer funds from one group of Americans to another. C. the debt will have to be repaid first to domestic creditors, then to foreign creditors. D. future interest payments will go to pay foreign debt first, then debt owed to American citizens.