Which of the following is an example of marginal analysis?
a. a fast food restaurant that only serves lunch and dinner trying to determine if it should open for breakfast.
b. a company looking at its total costs of production.
c. a worker calculating his total income.
d. an economist analyzing total output for the U.S. economy.
a. a fast food restaurant that only serves lunch and dinner trying to determine if it should open for breakfast.
You might also like to view...
The number of firms in a monopolistically competitive market means that
A) all firms will have substantial monopoly power since there are so few firms in the industry. B) each firm has a relatively small share of the total market since there are many firms in the industry. C) the firms will be likely to collude since there are only a few firms in the industry. D) firms will have a hard time earning non-negative profits since there are many firms in the industry.
One reason investors may prefer bonds over stocks is
a. potential profits are larger b. bond prices never vary c. bondholders get paid before stockholders d. owning bonds implies owning a part of the company e. interest rates do not affect the value of bonds
You are part of a local community theater group. It is the goal of the group to increase the amount of revenue earned through ticket sales. Mary says the obvious solution is to increase ticket prices. Is Mary correct?
a. Mary is correct if the demand for tickets is price inelastic. b. Mary is incorrect if the demand for tickets is price inelastic. c. Mary is correct. The increase in ticket prices will always increase revenue. d. Mary is incorrect. The increase in ticket prices will never increase revenue. e. Mary is incorrect. The way to increase revenue is to decrease ticket prices.
Which of the following is equivalent to the costs that firms incur in acquiring economic resources?
A. Revenues from the product B. Income of the resources C. Money flowing from the resources D. Profits from the resources employed