A firm replaces a machine by hiring 3 hourly production workers instead.
a. Both its fixed and variable costs will fall
b. Both its fixed and variable costs will rise.
c. Its fixed costs will rise and its variable costs will fall.
d. Its fixed costs will fall and its variable costs will rise.
d
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When people in the United States answer government surveys about how they feel about things, most report they are:
a. Very happy b. Pretty happy c. Not too happy d. Miserable
Suppose a company increases production from a point where marginal cost equals average total cost to a point where marginal revenue and marginal cost are equal. Is it a good idea for the company to do this? Why?
a. No, average total costs have increased which means the company is not minimizing losses. b. Yes, because average variable costs are always less than average total costs. c. No, because the marginal cost of producing the last unit is the same as the marginal revenue. d. Yes, even though the previous level of output had minimized the average total cost, there was still profit to be earned by producing additional units. e. No, the previous level of output was the most efficient because it had the lowest average total cost.
Discrimination by a manager in the hiring process
a. decreases the firm's costs. b. increases the firm's costs. c. is evident if a white manager refuses to hire a certain black applicant. d. is evident if a male manager fails to hire a certain female applicant.
Which is a correct match of an economic resource and payment for that resource?
a. Labor and interest income b. Capital and profit c. Land and rental income d. Entrepreneurial ability and wages