Javier wants to start a microbrewery business and is thinking of setting it up as a sole proprietorship
What are the advantages and disadvantages he will face by setting up the business as a sole proprietorship as opposed to a partnership or a corporation?
As a sole proprietorship, Javier has the advantages of having complete control of the business and would not face layers of management, as well as facing the easiest type of business to set up. The disadvantages include unlimited personal liability and the limited ability to raise funds (as are true with a partnership as well).
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Changes in which of the following shifts the aggregate supply curve?
i. the price level ii. the money wage rate iii. potential GDP A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
The largest single traded good (by value) in recent years has been
A) automobiles. B) wheat. C) televisions, stereos, and VCRs. D) steel.
Suppose the production of long-distance airline flights is described by a fixed proportion production process in which three crew members (i.e., labor) are required for each aircraft (i.e., capital)
If the airline operates with four crew members per plane, then we know that: A) the production process violates diminishing margin returns. B) production at this point is technically inefficient. C) the isoquants for this production process are upward sloping. D) the airline will have negative profits.
If the firm is maximizing profits, total profit will be
A. -$160.
B. $160.
C. -$4.
D. $10.