After employing her last laborer, Rachel notices that her Average Product has decreased. True or False: Her marginal cost is greater than her average variable cost
Indicate whether the statement is true or false
True . The decrease in average product indicates an increase in average variable cost. The average variable cost rises when the marginal cost is greater than the AVC.
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Are the wages of the pilots marginal costs or sunk costs to an airline trying to decide whether to add a late-night flight from Seattle to San Francisco? They are
A) marginal costs because pilots are indispensable to the flight. B) sunk costs if the pilots will receive no additional compensation for the flight. C) marginal costs because they will be paid after the flight rather than before. D) sunk costs because pilots' wage rates are determined by a contract already existing.
In January 2010, President Obama appointed which of the following to be chair of the Federal Reserve?
A) Greenspan B) Bernanke C) Geithner D) Trichet
Two small airlines provide shuttle service between Las Vegas and Reno. The services are alike in every respect except that Fly Right bought its airplane for $500,000, while Fly by Night rents its plane for $30,000 a year
If Fly Right were to go out of business, it would be able to rent its plane to another airline for $30,000. Which airline has the lower costs? A) Fly Right. B) Fly by Night. C) Neither, the costs are identical. D) Neither, Fly by Night has lower costs at small output levels and Fly Right has lower costs at high output levels.
A monopolistic competitor's demand curve is
a. perfectly elastic b. less elastic than a monopolist's or oligopolist's but more elastic than a perfect competitor's c. as elastic as an oligopolist's d. more elastic than a monopolist's or oligopolist's but less elastic than a perfect competitor's e. perfectly inelastic