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a. helps managers make decisions in the face of scarcity.
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managerial economics
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economic costs add the opportunity costs of a firm using its own resources while accounting costs do not
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economic costs of prod differ from accounting costs in that
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b. This cannot be determined without knowing Margie's total or marginal production costs.
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how many pounds of apples should margie sell to maximize her profit
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b
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Figure 12-9 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm. Identify the short-run shut down point for the firm.
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In the first year, economic profit is -$1,000 and accounting profit is $60,000
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Sally quit her job as an auto mechanic earning $50,000 per year to start her own business. To save money she operates her business out of a small building she owns which, until she started her own business, she had rented out for $10,000 per year. She also invested her $20,000 savings (which earned a market interest rate of 5% per year) in her business. You are given the following information about the first year of her operations.
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customers who have the more inelastic demand for the product.
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a firm that can effectively price discrimination will charge a higher price to
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third degree price discrimination
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Selling tickets in the orchestra region of the Metropolitan Opera for $55 and selling tickets in the upper balcony for $28 to listen to Luciano Pavoratti describes which type of price discrimination?
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second degree price discrimination
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If a firm charges customers $ 200 per unit of the first unit purchased, and $160 per unit for each additional unit purchased in excess of one unit. Then, what is the economic term of this strategy?
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inc the demand for the Galaxy
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f the Apple iPhone and the Samsung Galaxy are considered substitutes, then, other things equal, an increase in the price of the iPhone will
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c. the demand for gasoline would decrease.
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if the price of automobiles was to increase, then
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the calcium demand curve shifts to the right because of a change in tastes in favor of calcium
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Studies have shown links between calcium consumption and a reduction in osteoporosis. How does this affect the market for calcium?
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the demand curve for California whine shifts to the right in anticipation of higher prices in the future
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Buyers rush to purchase stocks in California vineyards following a forecast of a 30 percent decline in this year's grape harvest. What happens in the California wine market as a result of this announcement?
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the two goods are substitutes
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If the cross-price elasticity of demand for two goods is 1.25, then
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negative, and that good is an inferior good
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Assume that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good. The income elasticity of demand for the good is
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-0.76
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In September 2012, the average price of gasoline in the United States was $3.91 per gallon and consumers bought 5 percent less gasoline than they had during September 2011, when the average price was $3.66 per gallon. Based on these numbers, what was the arc price elasticity of demand (midpoint formula) for gasoline from September 2011 to September 2012?
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Demand is more elastic in the long run than it is in the short run
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Which of the following statements about the price elasticity of demand is correct?
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false
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The law of diminishing marginal returns states that increases in the variable input reduce the total product.
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false
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We should use relatively more labor if we learn that the marginal product per dollar of labor expenditures is less than a marginal product per dollar of capital expenditures.
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downward-sloping
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If production displays economies of scale, the long-run average cost curve is
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false
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Over time, more experienced workers will demand higher wage and therefore, will lead to an increase in the cost of production for the producers
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