A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . After the investment has been made, the $400,000 investment is
a. Considered sunk costs, not relevant in further decision making
b. Considered sunk costs, but still relevant in further decision making
c. Considered a loss
d. Considered a profit
a
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Which of the following formulas is used to calculate the inflation rate?
A) inflation rate = 100 × B) inflation rate = 100 × C) Inflation rate = 100 × D) Inflation rate = 100 × E) inflation rate = 100 ×
If Shaniq is a risk averse, then
A) her cost of risk exceeds $0. B) she has diminishing marginal utility of wealth. C) she is willing to buy insurance if the cost of insurance is low enough. D) all of the above.
For consideration of such issues as labor's productivity growth nationwide, the relevant measure is the
A) marginal product of labor. B) average product of labor. C) total product of labor. D) wage. E) cost of capital.
The international oil price hike by OPEC was an adverse supply shock faced by the U.S. in the 1970s
a. True b. False Indicate whether the statement is true or false