Which of these is an example of depreciation?
(A) A clothing store owner reduces the price of a belt by $10 to encourage sales.
(B) A worker's truck breaks down more often after 80,000 miles of driving.
(C) An employer fires a worker for repeatedly arriving late to work.
(D) A share of stock declines in value over several months.
Ans: (B) A worker's truck breaks down more often after 80,000 miles of driving.
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The Karaoke Channel Online streams professional-grade karaoke for $9.95 a month. Suppose Karaoke Channel Online has a constant marginal cost of $1 per customer and total fixed cost is $20,000. The profit maximizing number of customers is 10,000
Several competitors start to advertise online. Karaoke Channel Online now spends $5,000 a month on advertising and the profit maximizing number of customers increases to 12,000. What is Karaoke Channel Online's average total cost before the advertising begins? A) $3 B) $2 C) $1 D) $2.66
M2 money includes all the following except
a. demand deposits b. savings accounts c. large repurchase agreements d. money market mutual accounts e. small time deposits