According to this Application, the failure of including cell phones in a timely manner when calculating the CPI caused the telecommunications component of the price index
A) to become negative. B) to be biased upward.
C) to be biased downward. D) to actually register no perceptible bias.
B
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Gabriel operates a tree-trimming business in Maine. He charges the perfectly competitive price of $47 per hour. The marginal cost of working the 36th hour each week is $42; the marginal cost of working the 37th hour is $44; the 38th hour is $46; and the 39th hour is $48. How many hours should he work each week?
a. He should work 40 hours per week, because he can always earn more revenue by working more. b. He should work 39 hours per week, because he would have to lower his price if her wanted to work more than that. c. He should work 38 hours per week, because this is the workload that maximizes his net gain. d. He should work 36 hours per week, because the marginal cost of working rises after this point.
Output (Q)Total Fixed CostTotal Variable Cost020012052207320104201552021
Table 6.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $3:
A. the firm suffers a loss and is better off shutting down. B. the firm suffers a loss but is better off producing the output level where MR = MC. C. the market price is greater than the minimum average variable cost. D. None of these
Differences in innate skills and the benefits associated with the division of labor result in:
A. differences in productivity. B. absolute advantage. C. self-sufficiency. D. diminishing returns.
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.