The owner of a perfectly competitive firm that is earning economic losses in the short run
A. is earning less than he would if he worked for someone else.
B. should cut his own salary in order to reach the break-even point.
C. should alter the rate of output in order to increase profitability.
D. is actually losing more than he thinks because not all of the implicit costs have been considered.
Answer: A
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If the price is $110 per unit, what is the break even amount of units for technology B?
a. 20 b. 25 c. 30 d. None-They would have to shut down
Barbara is a retailer of propane and propane accessories. As she designs her store layout for the new season, she recalls that a tax has just been removed from propane and propane products. If her store reflects the overall market, how should this knowledge influence her design?
a. She should make the propane area larger because more propane will be sold. b. She should leave the propane area the same size because the same amount of propane will be sold. c. She should make the propane area smaller because less propane will be sold. d. She should close the propane area until a new tax is added to propane.
The table below shows the number of labor hours required to produce one umbrella and one bushel of corn in the United Kingdom and the rest of the world. Calculate the opportunity cost of producing an umbrella in the rest of the world. Labor hours to make:In the United KingdomIn the Rest of the World1 umbrella3.002.001 bushel of corn1.000.25
A. Three bushels of corn B. Eight bushels of corn C. 1/3 of a bushel of corn D. 1/8 of a bushel of corn
During the Great Depression, what appeared to be ________ fiscal policy was actually not when the ________ budget deficit or surplus is examined
A) expansionary; actual B) expansionary; cyclically adjusted C) contractionary; actual D) contractionary; cyclically adjusted