Suppose that Mimi plays golf 5 times per month when the price is $40 and 4 times per month when the price is $50. What is the price elasticity of Mimi’s demand curve?
If ten cases of spring water are sold at a price of $6 each in a perfectly competitive output market and the marginal product of the last unit of labor is 5, then the marginal revenue product of that last unit of labor is
A firm's level of investment depends on the market interest rate:
a. only when the firm has to borrow funds to invest in new equipment.
b. only when the firm has to borrow funds to buy stocks and bonds.
c. only when the firm already has sufficient funds and could lend them
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.<img src="https://sciemce.com/files/4/ppg__1420829190920__f1q204g1.jpg" alt="" style="vertical-align: 0.0px;" height="216" width="483" />In the short run, firms in this market will shut down if the market price is:
In a market for used cars, if the minimum supply price for plums is lower than consumers' willingness to pay for a lemon, only plums will be supplied at the consumers' willingness to pay for a lemon.
Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. <img src="https://sciemce.com/files/4/ppg__10504202023__f1q138g1.jpg" alt="" style="vertical-align: 0.0px;" height="269" width="333" /> Figure 13.2 Refer to Figure 13.2. The firm's ________ will be maximized at a price of $5.
Continuing with the same vacation-insurance company from the preceding question, what vacation-day price(s) would be acceptable to both the family and the insurance company?
Refer to the figure below. The socially optimal level of output could be achieved by imposing a tax on each unit equal to the distance ________. <img src="https://sciemce.com/files/4/ppg__1420829190927__f1q220g1.jpg" alt="" style="vertical-align: 0.0px;" height="204" width="256" />
Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.<img src="https://sciemce.com/files/4/ppg__1420829190920__f1q103g1.jpg" alt="" style="vertical-align: 0.0px;" height="246" width="280" />The socially optimal level of output is ________ units per day.
Refer to Scenario 7.7 below to answer the question(s) that follow. SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively. Refer to Scenario 7.7. The average product of labor with four workers is
Assume a firm is a monopoly and enjoys $10,000,000 profits per year. The firm lobbies to have a moratorium passed by Congress on new firms in its market for the next 25 years. If there is no discount rate, how much would the firm be willing to pay to deter entry?