Refer to the following figure. The price of capital is $50 per unit:
What is the minimum cost of producing 1,200 units of output?
A. $7,000
B. $8,000
C. $9,000
D. $10,000
E. $11,000
Answer: D
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An increase in investment causes the price level to ________ in the short run and ________ in the long run
A) decrease; increase B) increase; increase further C) increase; decrease D) decrease; decrease further
Answer the following statements true (T) or false (F)
1) In general, if two stages in a supply chain are making an economic profit by setting prices that exceed their marginal cost of production, managers can increase profit through vertical integration. 2) Because vertical integration is a yes or no decision, managers cannot use marginal analysis. 3) If a firm has a monopoly in both the production and distribution, managers of the two divisions should be encouraged to maximize profits in their separate divisions. 4) If a firm has a monopoly in both the production and distribution, to maximize the overall economic profit of the firm, managers of either the production or distribution center should be instructed to maximize profit and the managers of the other center should be instructed to operate as a competitive market. 5) Vertical integration can eliminate double marginalization.
An SCU can function effectively when:
a. the information flows to the SCU through the shortest route from the source. b. the aims and interests of its members and those of division-level employees coincide. c. the information flows to the SCU through a longer route, enabling multiple-level checks. d. the organization has different groups of individuals independently analyzing different types of risk.
The U.S. aggregate demand curve is downward sloping because
a. an increase in the U.S. price level causes an increase in U.S. spending on consumption goods b. at lower U.S. price levels, real wealth decreases, causing a decrease in the quantities of U.S. goods and services demanded c. at lower U.S. price levels, interest rates decrease, causing a decrease in the quantities of U.S. goods and services demanded d. at lower price levels in the U.S., U.S. exports become more attractive abroad, the demand for them increases, causing an increase in the quantities of U.S. goods andservices demanded e. increases in the U.S. price level do not affect American's real wealth