View Your World, a high-end window manufacturer, directly pays all of the transaction costs. The managers of View Your World are considering the profit-maximizing location for their plant. If locating the plant closer to its customers saves $7,000 in transportation costs of its windows to its customers, but causes an additional $7,500 in input transportation costs, View Your World ________ locate
its plant closer to its customers as the marginal benefit is ________ than the marginal cost.
A) should; less
B) should; greater
C) should not; less
D) should not; more
C) should not; less
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The cost of an action is
A) indeterminate from a strictly economic point of view. B) the value of the next-best alternative opportunity sacrificed C) the cost to the consumer plus the cost to the producer. D) the number of consumers needed to set the price. E) measured only in money.
Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's average total cost?
A) $12 B) $10 C) $8 D) $2
The problem with inflation is that as prices rise, consumers can no longer afford to buy as many goods and services
Indicate whether the statement is true or false
Which of the following provides medical insurance for individuals who fall below the poverty line?
a. Medicaid b. Medicare c. Affordable Care Act d. Temporary Assistance for Needy Families