The marginal cost of producing fish increases by $.01 with each additional fish. The marginal cost of the first fish is $.01, for the second it is $.02, etc. If the market price for fish is $7 per fish and your total fixed cost is $7,000 . you should
a. stop fishing after the 7,000th fish
b. stop fishing after the 700th fish
c. stop fishing after the 1,000th fish
d. shut down
e. there is not enough information to answer this question
E
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In October 2008, Congress passed the ________, under which the Treasury provided funds to banks in exchange for stock
A) Bank Rescue Alliance Treaty (BRAT) B) Mortgage Transfer Agency (MTA) C) Financial Assurance Association (FAA) D) Troubled Asset Relief Program (TARP)
Solutions to the moral hazard in equity contracts include all of the following EXCEPT
A) government regulations to increase information. B) the use of financial intermediaries. C) the use of debt contracts. D) government ownership of resources.
Fraudulent practices and other abuses of private pension funds led Congress to enact the
A) FDIC Act. B) Federal Reserve Act. C) FHLBS. D) Employee Retirement Income Security Act.
When a credit card company offers different services with its card, like travel insurance for air travel tickets purchased with the credit card or product insurance for items purchased with the card, the credit card company is trying to:
A. create a barrier to entry for competing firms. B. create a perfectly competitive market in which to sell its credit card. C. differentiate its credit card from those offered by other companies. D. shift the demand curve for competing firms to the right.