Happy Trails, a bicycle rental company, is considering purchasing three additional bicycles. Each bicycle would cost them $249.66 . At the end of the first year the increase to their revenues would be $140 per bicycle. At the end of the second year the increase to their revenues again would be $140 per bicycle. Thereafter, there are no increases to their revenues. At which of the following
interest rates is the sum of the present values of the additional revenues closest to the price of a bicycle?
a. 5 percent
b. 6 percent
c. 7 percent
d. 8 percent
d
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The existence of a universal law of scarcity creates pressures on societies to
A. use their resources according to government plans. B. economize in the use of their resources. C. allocate their resources equitably. D. exploit their resources.
A leftward shift of a product supply curve might be caused by
A. an improvement in the relevant technique of production. B. some firms leaving the industry. C. a decline in the prices of needed inputs. D. an increase in consumer incomes.
The Jeans Store sells 7 pairs of jeans per day when it charges $100 per pair. It sells 8 pairs of jeans per day at a price of $90 per pair. The marginal revenue of the eighth pair of jeans is
A) $20. B) $90. C) $100. D) $700.
A bowed Production Possibilities Curve (PPC) indicates
A) inefficient production. B) that the trade-off between the 2 goods is not constant. C) changing technology. D) only 1 good is always being produced.