You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table. ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50Which project has the lowest variance?
A. A
B. B
C. C
D. D
Answer: D
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Which of the following statements is true of the impact of trade restrictions on domestic employment?
a. Domestic firms will produce the goods that otherwise would have been produced abroad, thus employing foreign workers instead of domestic workers. b. Beside the protected industry, other industries will also benefit in terms of employment. c. Workers in the protected industry migrate to other industries. d. Restrictions imposed on trade redistribute jobs by creating employment in the protected industry and reducing employment elsewhere. e. Minimum wages for skilled and unskilled labor increase in the domestic country.
The firm can calculate all points on its total cost curve if it knows
A. its production function. B. the prices of inputs and of output. C. its average cost at its optimal output level. D. the prices of inputs and its production function.
Table 25.2Pool SweeperOutput (Revenue)Market Share (%)North Star$20,000 Hurricane$16,000 Blue Lagoon$2,000 Clean Sweep$2,000 Refer to Table 25.2. Assume there are only four firms in the pool sweeper industry. What is the market share for North Star?
A. 20 percent. B. 50 percent. C. 5 percent. D. 10 percent.
In most oligopolistic industries, positive profits attract new firms and thus increase production.
Answer the following statement true (T) or false (F)