[03.06] Which of the following is an example of a capital investment?

oil.

taxes.

stocks.

computer.

[03.06] Which investment produces a $5 hourly profit for a candy shop earning $1 profit per pound of candy?

worker at $10 per hour, producing 8 pounds of candy per hour

worker at $12 per hour, producing 16 pounds of candy per hour

machine with $5 per hour operating cost, producing 10 pounds of candy per hour

machine with $8 per hour operating cost, producing 14 pounds of candy per hour

[03.06] Which is the most profitable investment for a cell phone company earning $10 per plan contract?

opening a new store location with $200 daily operating cost, generating 30 new plans per day

redesigning web site at $50 daily operating cost, generating 10 new plans per day

creating television commercial at $25 daily operating cost, generating 15 new plans per day

offering free $10 gift for every new plan, generating 40 new plans per day


[03.06] Usually capital investments

increase productivity.

decrease productivity.

cost too much to be worthwhile.

are outdated before the company can afford them

[03.04] Pure competition is a market structure that has

few competitive firms with the same products.

many sellers with differentiated products.

a perfectly elastic demand curve.

one seller.


[03.04] An example of horizontal consolidation is when a bank

acquires a company that produces vaults.

purchases a share of the U.S. Treasury.

divides into two new banks.

combines with another bank

[03.04] The level of competition most beneficial to consumers is

oligopoly.

monopoly.

pure competition.

monopolistic competition.