When a firm's fixed costs increase it should raise its prices in order to maximize profits
a. True
b. False
Indicate whether the statement is true or false
False
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Answer the following statement true (T) or false (F)
1) The real opportunity cost of producing product X is the amounts of products Y, Z, and so forth, that might have been produced if resources had not been used to produce X. 2) The short run is a period of time during which all costs are fixed costs. 3) Variable costs are costs that change directly with output. 4) Diseconomies of scale stem primarily from the difficulties in managing and coordinating a large-scale business enterprise. 5) At zero units of output a firm's variable costs are zero.
Which of the following statements regarding principal-agent relations is CORRECT?
A) Workers are principals for managers. B) Stockholders are agents. C) Managers are both principals and agents. D) All of the above answers are correct.
How much trade do currency unions create?
What will be an ideal response?
The chances of successful collusion are greatest when
a. firms are producing a differentiated product b. there are many firms in the industry c. there are tiny firms and huge firms together in the same industry d. demand curves and cost curves are similar among the firms in the industry e. demand is falling