Managers experience bounded rationality when they focus narrowly on maximizing their firm's profits and ignore the broader perspective of society's preferences
a. True
b. False
B
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Figure 4-23
In Figure 4-23, which of the following movements would be caused by a change in income?
A. A to C B. C to A C. B to D D. B to A
The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. Based on this information, the Bubby Gum company should
A) fire Joanne because she creates a loss for the firm. B) increase its demand for labor. C) decrease Joanne's wage rate because she is paid too much. D) keep Joanne because she creates a profit for the firm. E) None of the above answers is correct because more information about Joanne's real wage is needed to decide what to do.
Spending so much on arms that the economy of an adversary collapses is called market warfare
a. True b. False
Answer the following statement(s) true (T) or false (F)
1. The total revenue curve for a perfectly competitive firm will be a straight line with positive slope. 2. The marginal revenue curve for a perfectly competitive firm will be downward sloping. 3. Marginal costs reflect changes in variable costs. 4. The short-run is a period of less than one year. 5. The production decision is a short-run decision.