Jill, a bookkeeper, just received an attractive offer from an outside firm and so she asks for a raise from her current employer. If the management of Jill's company is aware of the offer, her raise request is more likely to be
a. Accepted
b. Rejected
c. Laughed at
d. All of the above
QUESTION 2When there are economies of scale,
a. per-unit costs increase as output increases
b. per-unit costs decrease as output increases
c. per-unit costs are constant as output increases
d. output does not affect per-unit costs
QUESTION 3Jill, a bookkeeper just received an attractive offer from an outside firm. Her opportunity cost, of staying in her current position has
a. Increased
b. Decreased
c. Not changed
d. All of the above
QUESTION 4If your long-run costs exhibit increasing returns to scale, securing big orders leads you to
a. Increase average costs
b. Reduce average costs
c. Keep the average costs constant
d. None of the above
QUESTION 5Jim is haggling with a car dealer on the price of a used car. During the bargaining, the storekeeper discovers that the car's stereo is better than he or Jim originally realized. If Jim is a huge music fan, the total surplus available from the sale
a. Increases
b. Decreases
c. Is not affected
d. All of the above
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