Related to the Economics in Practice on page 151: Which of the following is the best analysis of the question of how fast delivery truck drivers should drive in order to reduce costs?
A. They should drive as quickly as possible in order to make more deliveries per day.
B. They should balance the concerns of speed and fuel efficiency and drive at a speed that minimizes total expenses.
C. They should drive at the most fuel - efficient rate in order to reduce fuel consumption costs.
D. They should drive as close to the legal speed limit as possible
Answer: B. They should balance the concerns of speed and fuel efficiency and drive at a speed that minimizes total expenses.
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A current value for the CPI of 125 means that the
A. consumer must now pay $1.25 to purchase goods that cost $1.00, on the average, in the base year. B. average price level currently is 125 times higher than the average price level during the base year. C. purchasing power of a given money income is 25 percent larger during the base year than when the index was formulated. D. purchasing power of money has increased 125 percent over time.
Refer to the above graph. At output level H, the area:
A. 0AEH represents the firm's economic profit. B. 0CGH represents the firm's total cost of production. C. ACGE represents the firm's economic profit. D. BCGF represents the firm's fixed costs of production.