FIGURE 13- 4 the Three Diagrams Below Each Show a Supply

question 12

Multiple Choice

FIGURE 13- 4 The three diagrams below each show a supply curve for oil tankers over a relatively short period of time.

-Consider a small firm that is producing winter jackets.It can lease an additional sewing machine for one month for $2400.With this additional machine,the firm can produce an additional 4 jackets during that time period that it sells for $550 each.Hiring the marginal machine adds to the firm's profit and so it should _ the machine.

• A)$0; be indifferent as to whether to lease
• B)$2400; lease
• C)- $200; not lease
• D)$200; lease
• E)- $2400; not lease

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Definitions:

Average Tax Rate

The proportion of total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the total income.

Machiavellianism

The extent to which someone is emotionally detached and manipulative.

High-Mach Personality

Describes individuals with a Machiavellian personality trait, who are manipulative, deceitful, and regard others as tools to achieve their own goals.

Low-Mach Personality

A personality type characterized by a low level of manipulation and deceit in interpersonal relationships.