ACME Corporation used to produce $50 worth of goods (in year 2000 dollars) per million BTUs used. Now it produces $60 worth of goods (in year 2000 dollars) per million BTUs. Based on this, we can conclude:
A. nothing about ACME's energy efficiency.
B. that ACME's energy efficiency has declined.
C. that ACME's energy efficiency has improved.
D. that ACME is using a single energy source and achieving economies of scale in
production.
Answer: C
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Managerial economics refers to the application of microeconomics to business decision making
Indicate whether the statement is true or false
Investment spending ________
A) is comprised of fixed and inventory investment B) is negatively related to the real interest rate C) is heavily influenced by what Keynes coined as "animal spirits" D) all of the above E) none of the above
A university raises annual tuition by 10 percent. No other events have occurred, and the university's revenues have increased. It must be TRUE that
A) the associated change in quantity demanded was smaller than 10 percent. B) the associated change in quantity demanded was equal to 10 percent. C) the associated change in quantity demanded was greater than 10 percent. D) there was no associated change in quantity demanded.
In the events of the housing bubble collapsing, once the housing prices stopped increasing refinancing:
A. was no longer an option, and a wave of foreclosures occurred. B. no longer allowed people to borrow cash on the new value of their home, and spending slowed. C. became less popular, and people's consumption overall dropped. D. became more popular, and people's consumption accelerated overall.