A Manager Invests $400,000 in a Technology to Reduce Overall

question 15

Multiple Choice

A manager invests $400,000 in a technology to reduce overall costs of production.The company managed to reduce their cost per unit from $2 to $1.85.Ceteris peribus,if the firm continues its production in the same economic environment,the firms economic profits should

• A)increase
• B)decrease
• C)stay the same
• D)increase as long as the investment does not generate implicit costs that are greater than $0.15 per unit

Comprehend the treatment of costs associated with defending intangible assets.

Understand historical patterns and consequences of urbanization and suburbanization in the U.S.

Recognize the causes and effects of economic recessions and depressions in U.S. history.

Identify the impact of governmental policies on U.S. economic development from the 20th century to the present.

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Definitions:

Certificates of Deposit

Savings certificates with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements.

Required Reserve Ratio

The fraction of deposits that regulators require a bank to hold in reserves and not lend out.

Money Supply

The sum of all financial resources in the form of cash, coins, and amounts in checking and savings accounts present within an economy at a given moment.

Government Securities

Financial instruments issued by a government to finance its expenditures, including bonds, bills, and notes.