________ is creating a marketable capital market instrument by bundling a portfolio of mortgage or auto loans
A) Diversification
B) Arbitrage
C) Computerization
D) Securitization
D
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Marginal cost is the increase in total ________ that results from a one-unit increase in ________
A) fixed cost; the fixed input B) cost; output C) variable cost; the variable input D) fixed cost; output
Vertical contracts often result in
a. Higher prices b. Lower prices c. Unchanged prices d. None of the above
Suppose Bev's Bags makes large handbags and small handbags. They sold 70,000 large bags for $45 each and 25,000 small bags for $15 each. What was the total revenue for this company?
A. $3,150,000 B. $375,000 C. $3,525,000 D. $2,850,000
If a firm is a perfectly competitive purchaser of factor inputs and the wage rate is $10, the marginal factor cost for labor is
A) greater than $10. B) less than $10. C) $10. D) indeterminate.