Suppose That a Large Tornado Destroys the Fleet of Fire

question 352

Multiple Choice

Suppose that a large tornado destroys the fleet of fire trucks for the city of Omaha, Nebraska. What happens to the earnings of firefighters in Omaha?

• A)The reduction in the supply of fire trucks reduces the marginal productivities of Omaha firefighters, which causes the equilibrium wage to fall.
• B)The reduction in the supply of fire trucks increases the marginal productivities of Omaha firefighters, which causes the equilibrium wage to fall.
• C)The reduction in the supply of fire trucks reduces the marginal productivities of Omaha firefighters, which causes the equilibrium wage to rise.
• D)The reduction in the supply of fire trucks increases the marginal productivities of Omaha firefighters, which causes the equilibrium wage to rise.

Define sales mix and its influence on business strategy and operations.

Recognize the necessity of covering all costs and generating profits for long-term business sustainability.

Understand the significance of EBITDA in internal decision-making processes.

Realize the importance of choosing products with higher contribution margins for profitability in the short run.

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Definitions:

Contract Law

This branch of law deals with the formation, interpretation, and enforcement of contracts between parties.

Licensing Statute

A law that requires individuals or entities to obtain permission through a license to engage in certain professions or activities.

Criminal Agreement

A mutual understanding or arrangement between two or more parties to commit an illegal act or to achieve a legal end through illegal actions.

Tortious

Pertaining to wrongful acts that result in harm or injury to another person, and for which the law may impose civil liability.