Marginal cost is:
A. the additional output a firm will get by employing one additional unit of input.
B. the additional cost a firm will incur by producing one additional unit of output.
C. the total cost a firm will incur by producing a given level of output.
D. the costs that sit on the margin, that do not change regardless of the level of output.
B. the additional cost a firm will incur by producing one additional unit of output.
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Microsoft has integrated many components into its Windows operating systems, such as a web browser, media player, etc. How might this be an example of nonprice competition?
What will be an ideal response?
How often should a firm address 'social responsibility'?
A) never. B) all the time. C) once a year. D) over the long-run.
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index and current international transactions remain the same. b. The GDP Price Index falls, and current international transactions become more negative (or less positive). c. The GDP Price Index rises, and current international transactions becomes more negative (or less positive). d. The GDP Price Index rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
When government mandates participation in a program to solve an information asymmetry problem, it is trying to prevent:
A. building a reputation. B. illegal screening. C. moral hazard. D. adverse selection.