Dana spends $10,000 on remodeling a storefront that she then opens as a shoe store. The business has not been very successful, and she needs an additional $3,000 to keep the shoe store open. Which of the following is true?
A. The $3,000 represents her marginal costs of production.
B. The $3,000 Dana needs to keep the deli open represents her total fixed costs.
C. The $10,000 Dana spent on remodeling represents a part of the total variable cost of her business.
D. The $10,000 Dana spent on remodeling is a fixed cost of her business.
Answer: D
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Regulated natural monopolies can obey a marginal cost pricing rule and still make a normal profit by engaging in
A) least cost pricing and average cost pricing. B) price discrimination and two-part tariff pricing. C) zero profit pricing. D) profit-maximizing pricing. E) None of the above answers is correct because a natural monopoly regulated using a marginal cost pricing rule always incurs an economic loss.
Increasing-cost production-possibility curves are bowed-out from the origin.
Answer the following statement true (T) or false (F)
In 2013, what was the U.S. export of goods and services as a percentage of GDP?
a. 13.5% b. 16.2% c. 45.6% d. 29.8%
Suppose a new cost-saving device will generate $1,000 net savings per year to a firm. The device costs $10,000. Should the firm purchase the device?
A) definitely B) absolutely not C) The firm is indifferent between buying the device and not. D) More information is required to answer.