When buying a car from a dealer, to get a better bargaining position
a. Always carry your check book to show willingness to buy
b. Carry only blank checks to ease the transaction
c. Carry a cashier check that cannot be modified
d. All of the above
QUESTION 2If long run average costs are constant with respect to output, you have
a. Increasing returns to scale
b. Decreasing returns to scale
c. Constant returns to scale
d. None of the above
QUESTION 3The firm would have a better bargaining position if
a. The firm can easily replace the workers with machinery
b. The workers are a critical part of the production process
c. The workers are highly specialized and would not find employment elsewhere easily
d. Both A&C
QUESTION 4Which of the following is true
a. Increasing output always leads to increase in profits
b. Increasing outputs increase profits if price is above marginal cost
c. Increasing output increases profits if price is lea than marginal costs
d. Increasing output always decreases profits
QUESTION 5The union would have a better bargaining position in the negotiations if
a. The firm can hire individual workers at a lower wage
b. The union has low wage workers who cannot afford to be off work
c. The union has a strike fund to pay workers during work stoppage actions
d. The firm can easily replace workers with machinery
QUESTION 6Average costs_____ initially due to the presence of fixed costs and then _____due to increasing marginal costs
a. rise; rise
b. rise; fall
c. fall; rise
d. fall; fall