Which of the following examples involves variable costs
a. Last year, Gerard Industries paid $2 million for raw materials.
b. Gerard Industries pays $100,000 a year for rent.
c. Gerard Industry just made an annual insurance payment of $50,000.
d. The property tax rate for Gerard Industries remains at 2 percent.
a. Last year, Gerard Industries paid $2 million for raw materials.
You might also like to view...
If opportunity costs are constant, the production possibilities frontier would be graphed as
A) a negatively sloped straight line. B) a ray from the origin. C) a positively sloped straight line. D) a negatively sloped curve bowed in toward the origin.
The above figure shows supply and demand curves for milk. If the government passes a $2 per gallon specific tax, the loss in producer surplus will equal
A) b + c + f + g. B) f + g. C) b + f. D) c + g.
Asymmetric information includes the concepts of
A) moral hazard transfer costs. B) adverse selection and public goods. C) adverse selection and moral hazard. D) negative and positive externalities.
An oligopolistic market
a. has a small number of rival firms, and each is large relative to the size of the market. b. is characterized by firms that merely take the price that is determined by the forces of supply and demand in the market. c. has low entry barriers facing firms that may be interested in entering the market. d. has a large number of firms that are small relative to the size of the market.