A firm built an inventory of 16-bit chips for $50,000 last year. However, the introduction of 32-bit chips lowers the market price for 16-bit chips and the inventory can only be sold for $40,000 now. What is the sunk cost?
A) $50,000
B) $40,000
C) $10,000
D) $90,000
C
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Suppose Sarah owns a small company that makes wedding cakes. The table below shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day.Number ofCakes Per DayTotal CostPer Day0$1001$1802$2203$3004$4005$5206$660If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $95 each, then Sarah should produce ________ cakes per day.
A. 6 B. 3 C. 5 D. 0
In an English auction, ________ with each bid
A) the price of the good increases B) the price of the good decreases C) the quantity of the good being offered increases D) the quantity of the good being offered decreases
Under a fixed exchange rate system, the central bank must
a. have an unlimited supply of domestic currency. b. have a very large supply of foreign assets. c. follow a constant money growth rule. d. allow the money supply to adjust to keep interest rates and exchange rates unchanged.
Which of the following increases when the Fed makes open-market sales?
a. currency and reserves b. currency but not reserves c. reserves but not currency d. neither currency nor reserves