Critically evaluate the following statement. "It's better to make people wait in line than it is to make them have to pay more for the product."
What will be an ideal response?
The true cost of purchasing anything is not just the price paid for the product or the service but the opportunity cost of time for the consumer. Making people wait in line may actually increase the total cost of acquiring the good beyond what the customer may have paid if the price had risen to its equilibrium level.
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If you sold a short contract on financial futures you hope interest rates
A) rise. B) fall. C) are stable. D) fluctuate.
A firm maximizes its profit by producing that quantity of output for which
a. marginal revenue equals total revenue b. marginal revenue exceeds marginal cost by the greatest amount c. price is the greatest distance above average total cost d. the difference between total revenue and total cost is the greatest e. marginal cost equals average cost