For a cruise liner deciding how to price its rooms, if the cost of overpricing is higher than the cost of underpricing, then the management of the cruise liner should
a. Price lower than what they expect would fill capacity
b. Price higher than what they expect would fill capacity
c. Price such that they would expect to just fill capacity
d. None of the above
a
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Permitting the exchange rate to float
A) automatically reduces the real income effects of volatility in aggregate expenditures. B) will result in dramatic shifts in the balance of payments. C) will induce locomotive effects between most trading partners. D) will result in the complete crowding-out effect of fiscal spending.
If the marginal physical product (MPP) of the last dollar spent on labor is only half as large as the MPP from the last dollar spent on capital, this firm should
A) increase its use of labor and employ less capital. B) employ more capital. C) increase its use of both labor and capital. D) maintain its current factor utilization pattern.
Considering the euro-U.S. dollar market, as a euro purchases a larger number of U.S. dollars, we should see:
A. the quantity of dollars supplied increase. B. a decrease in American exports to Europe. C. the quantity of dollars demanded decrease. D. an increase in the purchase of U.S. assets by Europeans.
What is total revenue for a firm?
What will be an ideal response?