Which of the following is most likely a fixed cost?
A. The labor on an automotive assembly line.
B. The electricity used to run packaging equipment.
C. The rent for a factory.
D. The material used to make jackets.
Answer: C
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Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good) to decrease?
A) a technological advancement that results in a bumper crop of potatoes B) a freeze that sharply reduces potato output C) a decrease in consumer income D) an increase in consumer income
The combination of a successful wage push by workers and the government's commitment to high employment leads to
A) demand-pull inflation. B) supply-side inflation. C) supply-shock inflation. D) cost-push inflation.
It is likely true that education produces positive externalities
a. True b. False
A firm that maximizes its profits by producing a certain level of output must also:
a) maximize its revenue. b) minimize its variable costs. c) maximize its output d) maximize its sales. e) minimize its cost of producing that output.