Travel websites such as Travelocity tend to offer reservation services for multiple travel modes. This is because
A) the firms have contractual obligations to offer reservations for airlines and railroads, for example.
B) the firms have statutory obligations to offer reservations for airlines and railroads, for example.
C) once the firm has the reservation technology for airlines, there are economies of scale in offering the same service for railroads.
D) once the firm has the reservation technology for airlines, there are economies of scope in offering the same service for railroads.
D
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An increase in consumption, investment, or net exports caused by a decrease in government purchases is known as
A) crowding in. B) a closed economy. C) crowding out. D) demand-side effects.
A firm decides to hire more equipment if:
a. the average revenue it earns by selling its output is equal to its average cost. b. its total revenue is greater than the total cost of hiring the equipment. c. the marginal revenue product of the additional unit of equipment is greater than the marginal factor cost. d. its average revenue is greater than the average cost of hiring equipment. e. the price of its product is greater than the average cost of production.
Katherine is willing to pay $75 for a purse. If she receives a consumer surplus of $25, the market price of the purse is _____
a. $50 b. $100 c. $25 d. $75
Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of CompanyRevenuesCost of Purchased inputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$.75The Corner Store$2.50$2.00If the oranges were grown and the jam produced in the year 2015, but the marmalade was sold at The Corner Store in the year 2016, what is the contribution of these transactions to GDP in the year 2016?
A. $0.00 B. $0.50 C. $2.50 D. $2.00